Financial Analysis 2 The Chief Financial Analyst of United Technologies, Inc. has developed a regression model relating annual GDP growth to company sales growth. The diagnostic plot below was obtained. Use this information to answer the following questions Normal Distribution Scores Normal Probablity Plot
Financial Analysis 2 The Chief Financial Analyst of United Technologies, Inc. has developed a regression model relating annual GDP growth to company sales growth. The diagnostic plot below was obtained. Use this information to answer the following questions Normal Distribution Scores Normal Probablity Plot
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Financial Analysis 2: The Chief Financial Analyst of United Technologies, Inc. has developed a regression model relating annual GDP growth to company sales growth. The diagnostic plot
below was obtained. Use this information to answer the following questions
Normal Distribution Scores
17
2
oo
Normal Probablity Plot
-1
0
Standardized Residuals

Transcribed Image Text:(a) What is being informally tested here? (Choose one)
Whether all of the x variables are important in predicting y.
The assumption of constant variance.
O Whether there is a linear relationship between x and y.
The assumption of linearity.
The assumption of independence.
O The assumption of normally-distributed disturbances.
(b) Which hypotheses are informally being tested? (Choose one)
O Ho: All of the x variables in the model are not important
Ha: Atleast one of the x variables is important
O Ho: B₁ = 0
Ha: B₁# 0
O Ho: Disturbances are normal
Ha: Disturbances are non-normal
O Ho: The model variance is constant
Ha: The model variance is not constant
Ho: P1 = 1.0
Ha: 1 # 1.0
(c) What is your conclusion? (Choose one)
O The assumption of constant variance has been met.
The assumption of independence has not been met.
The assumption of constant variance has not been met.
O There is not a linear relationship between x and y.
O The assumption of normally-distributed disturbances has not been met.
O The assumption of normally-distributed
disturbances has been met.
en met.
The assumption of independence has
O There is a linear relationship between x and y.
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