b) A random sample of 100 athletes show that their average running time follow a normal distribution with mean µ and known standard deviation equal to 80 minutes. Let the null hypothesis be H,: µ = 56 & HA: µ > 56. Let the rejection region be i> 60. If u = 62, find the probability of type II error. What is the relationship between Type I and Туре I егor? Eхplain (18.75)

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Q1 a) Consider the following data on hourly wage rates (Y), labour productivity (X1) and
literacy rate (X2) in a country ABV:
Y
90 72 54 42 30 | 12
X1 3 56 8 12 14
X2 16 10 7 4 3 2
i.
Calculate the estimators of the regression Y; = B1 + B2X2i + B3X31 + Hi
ii.
Test the hypothesis ß2 = 0 against the alternative B2 > 0 at 5% level of
significance.
Calculate R? and R² and comment on them.
iii.
iv.
Construct an ANOVA table and check for the significance of the regression at
5% level of significance.
Do you think that Cov (µ,x) will be non-zero in the model which has low R?
Explain.
v.
b) A random sample of 100 athletes show that their average running time follow a
normal distribution with mean µµ and known standard deviation equal to 80 minutes. Let
the null hypothesis be Ho: µ = 56 & H4: µ > 56. Let the rejection region be > 60. If
u = 62, find the probability of type II error. What is the relationship between Type I and
Туре I еrror? Explain
(18.75)
Transcribed Image Text:Q1 a) Consider the following data on hourly wage rates (Y), labour productivity (X1) and literacy rate (X2) in a country ABV: Y 90 72 54 42 30 | 12 X1 3 56 8 12 14 X2 16 10 7 4 3 2 i. Calculate the estimators of the regression Y; = B1 + B2X2i + B3X31 + Hi ii. Test the hypothesis ß2 = 0 against the alternative B2 > 0 at 5% level of significance. Calculate R? and R² and comment on them. iii. iv. Construct an ANOVA table and check for the significance of the regression at 5% level of significance. Do you think that Cov (µ,x) will be non-zero in the model which has low R? Explain. v. b) A random sample of 100 athletes show that their average running time follow a normal distribution with mean µµ and known standard deviation equal to 80 minutes. Let the null hypothesis be Ho: µ = 56 & H4: µ > 56. Let the rejection region be > 60. If u = 62, find the probability of type II error. What is the relationship between Type I and Туре I еrror? Explain (18.75)
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