: The following table reports the results of a t-test using STATA. Group 1 refers to developed countries, Group 0 refers to the off-shores and European & Asian developing countries. The statistics reported are based on the average liquid liabilities during the 2000s. i. Carefully set up the null and alternative hypothesis, the risk you encounter in your decision, the steps to make the decision, and provide a clear conclusion using the p-value. ii. Using the t-values draw a graph showing the corresponding values of the t and the acceptance and rejection areas. iii. A friend believes that your decision was a Type I error. Explains what it means. iv. Using information provided in the STATA output above, show how the t statistic for the test has been calculated. v. Using the information provided in the table above, show how the 95% confidence intervals have been derived. Also calculate and comment on the confidence interval at 99%, explaining what the confidence intervals capture.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
: The following table reports the results of a t-test using STATA.
Group 1 refers to developed countries, Group 0 refers to the off-shores and
European & Asian developing countries. The statistics reported are based on the
average liquid liabilities during the 2000s.
i. Carefully set up the null and alternative hypothesis, the risk you encounter
in your decision, the steps to make the decision, and provide a clear
conclusion using the p-value.
ii. Using the t-values draw a graph showing the corresponding values of the t
and the acceptance and rejection areas.
iii. A friend believes that your decision was a Type I error. Explains what it
means.
iv. Using information provided in the STATA output above, show how the t
statistic for the test has been calculated.
v. Using the information provided in the table above, show how the 95%
confidence intervals have been derived. Also calculate and comment on the
confidence interval at 99%, explaining what the confidence intervals
capture.
![Tvo-sample t test vith equal variances
Group
Obs
Mean
Std. Err.
Std. Dev.
[95% Conf. Interval]
36
33
15371.94
6206.275
37237.65
2772.537
27971.35
199013.5
113404.5
42028.42
241434.9
27795.36
combined
69
62257.06
21051.35
174865.7
20249.74
104264.4
diff
-98032.51
40731.61
-179333.1
-16731,88
diff mean (0)
nean (1)
-2,4068
Bos diff 0
degrees of freedon
Ba diff <0
Ba: diff != 0
Has diff 0
Pr ( < t) - 0.0094
= 0.0189
Pr (T t) = 0.9906](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cc76a2b-c704-483d-a422-7ca68e4ffb8d%2F52e7cba2-0a0b-421f-9346-7ac5a5ec16a5%2Fhurbmdlh_processed.jpeg&w=3840&q=75)
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