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Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01 2019M12 Included observations: 120 Variable с UNEMP R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient Std. Error 1-Statistic Prob. 9.586787 1.478492 6.484167 0.0000 -1.232859 0.267930 -4.601419 0.0000 0.152135 Mean dependent var 0.144949 S.D. dependent var 1.105708 Akaike info criterion 144.2656 Schwarz criterion -181.3225 Hannan-Quinn criter. 21.17306 Durbin-Watson stat 0.000011 2.799500 1.195761 3.055375 3.101833 3.074242 0.028137 The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). In testing for the null hypothesis that the coefficient of UNEMP is 0, what is Type II error? Select one: O a. UNEMP has no effect on INTEREST, but the test accepts the null hypothesis Ob UNEMP has some effect on INTEREST, but the test does not reject the null hypothesis UNEMP has some effect on INTEREST, but the test rejects the null hypothesis O c. O d. UNEMP has no effect on INTEREST, but the test rejects the null hypothesis

Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01 2019M12 Included observations: 120 Variable с UNEMP R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient Std. Error 1-Statistic Prob. 9.586787 1.478492 6.484167 0.0000 -1.232859 0.267930 -4.601419 0.0000 0.152135 Mean dependent var 0.144949 S.D. dependent var 1.105708 Akaike info criterion 144.2656 Schwarz criterion -181.3225 Hannan-Quinn criter. 21.17306 Durbin-Watson stat 0.000011 2.799500 1.195761 3.055375 3.101833 3.074242 0.028137 The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). In testing for the null hypothesis that the coefficient of UNEMP is 0, what is Type II error? Select one: O a. UNEMP has no effect on INTEREST, but the test accepts the null hypothesis Ob UNEMP has some effect on INTEREST, but the test does not reject the null hypothesis UNEMP has some effect on INTEREST, but the test rejects the null hypothesis O c. O d. UNEMP has no effect on INTEREST, but the test rejects the null hypothesis

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01 2019M12 Included observations: 120 Variable с UNEMP R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient 9.586787 -1.232859 Std. Error t-Statistic Prob. 1.478492 6.484167 0.0000 0.267930 -4.601419 0.0000 0.152135 Mean dependent var 0.144949 S.D. dependent var 1.105708 Akaike info criterion 144.2656 Schwarz criterion -181.3225 Hannan-Quinn criter. 21.17306 Durbin-Watson stat 0.000011 2.799500 1.195761 3.055375 3.101833 3.074242 0.028137 The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). In testing for the null hypothesis that the coefficient of UNEMP is 0, what is Type II error? Select one: a. UNEMP has no effect on INTEREST, but the test accepts the null hypothesis O b. UNEMP has some effect on INTEREST, but the test does not reject the null hypothesis O C. UNEMP has some effect on INTEREST, but the test rejects the null hypothesis O d. UNEMP has no effect on INTEREST, but the test rejects the null hypothesis
Transcribed Image Text:Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01 2019M12 Included observations: 120 Variable с UNEMP R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient 9.586787 -1.232859 Std. Error t-Statistic Prob. 1.478492 6.484167 0.0000 0.267930 -4.601419 0.0000 0.152135 Mean dependent var 0.144949 S.D. dependent var 1.105708 Akaike info criterion 144.2656 Schwarz criterion -181.3225 Hannan-Quinn criter. 21.17306 Durbin-Watson stat 0.000011 2.799500 1.195761 3.055375 3.101833 3.074242 0.028137 The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). In testing for the null hypothesis that the coefficient of UNEMP is 0, what is Type II error? Select one: a. UNEMP has no effect on INTEREST, but the test accepts the null hypothesis O b. UNEMP has some effect on INTEREST, but the test does not reject the null hypothesis O C. UNEMP has some effect on INTEREST, but the test rejects the null hypothesis O d. UNEMP has no effect on INTEREST, but the test rejects the null hypothesis
Expert Solution
Definition of type 2 error

If we have a particular hypothesis about the population, but we assumed the false null hypothesis. And while working with the samples we also failed to reject the null hypothesis (which was false). Then we can say that we committed the type 2 error. 

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