Applied Statistics in Business and Economics
5th Edition
ISBN: 9780077837303
Author: David Doane, Lori Seward Senior Instructor of Operations Management
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 6CR
a.
To determine
Explain the reason that the two tailed hypothesis test and the confidence interval for the slope and intercept are equivalent.
b.
To determine
Explain the reason of performing a test of zero slope.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Conduct a hypothesis for whether consumption and income are linearly related using ? =0.01. The standard error of the slope is 0.144. Slope = 0.75, Intercept = 0, sample:Income 9, 11, 5, 8, 2, 9, 12Consumption 7, 7, 2, 7, 2, 8, 9
Step 1: State the null and alternative hypotheses.Step 2: Choose the significance level.Step 3: Calculate the test statistic.Step 4: Find the critical value(s).Step 5: Compare the test statistic to the critical value(s).Step 6: State the conclusion.
The relationship between IQ level and exam score was estimated as below in a linear format.
(IQ level and exam scores are both measured in points)
Exam score = 1.38 * IQ level - 67.43
(The p-value for the coefficient of IQ level is 0.04.)
Base on the above equation, which of the following statements are true? (Select all that apply. There can be more than one answer.)
The expected exam score of a person with an IQ level of 100 points is 70.57
The expected exam score of a person with an IQ level of 0 points is 1.38 points
As a person’s IQ level increases by 1 point, his or her exam score is expected to increase by 1.38
Five pairs of data are used in determining a regression line ŷ = -3 + 4x. If the five values of the
explanatory variable are 28, 45, 16, 41, and 20, respectively, what is the mean of the five values of the
response variable?
Chapter 12 Solutions
Applied Statistics in Business and Economics
Ch. 12.1 - Prob. 1SECh. 12.1 - Prob. 2SECh. 12.1 - Prob. 3SECh. 12.1 - Prob. 4SECh. 12.1 - Prob. 5SECh. 12.1 - Prob. 6SECh. 12.2 - (a) Interpret the slope of the fitted regression...Ch. 12.2 - (a) Interpret the slope of the fitted regression...Ch. 12.2 - Prob. 9SECh. 12.2 - (a) Interpret the slope of the fitted regression...
Ch. 12.2 - (a) Interpret the slope of the fitted regression...Ch. 12.3 - Prob. 12SECh. 12.3 - Prob. 13SECh. 12.3 - The regression equation Credits = 15.4 .07 Work...Ch. 12.3 - Below are fitted regressions for Y = asking price...Ch. 12.3 - Refer back to the regression equation in exercise...Ch. 12.3 - Refer back to the regression equation in exercise...Ch. 12.4 - Instructions for exercises 12.18 and 12.19: (a)...Ch. 12.4 - Instructions for exercises 12.18 and 12.19: (a)...Ch. 12.4 - Instructions for exercises 12.2012.22: (a) Use...Ch. 12.4 - Instructions for exercises 12.2012.22: (a) Use...Ch. 12.4 - Instructions for exercises 12.2012.22: (a) Use...Ch. 12.5 - Instructions for exercises 12.23 and 12.24: (a)...Ch. 12.5 - Prob. 24SECh. 12.5 - A regression was performed using data on 32 NFL...Ch. 12.5 - A regression was performed using data on 16...Ch. 12.6 - Prob. 27SECh. 12.6 - Prob. 28SECh. 12.6 - Instructions for exercises 12.2912.31: (a) Use...Ch. 12.6 - Instructions for exercises 12.2912.31: (a) Use...Ch. 12.6 - Instructions for exercises 12.2912.31: (a) Use...Ch. 12.7 - Refer to the Weekly Earnings data set below. (a)...Ch. 12.7 - Prob. 33SECh. 12.8 - Prob. 34SECh. 12.8 - Prob. 35SECh. 12.9 - An estimated regression for a random sample of...Ch. 12.9 - An estimated regression for a random sample of...Ch. 12.9 - Prob. 38SECh. 12.9 - Prob. 39SECh. 12 - (a) How does correlation analysis differ from...Ch. 12 - (a) What is a simple regression model? (b) State...Ch. 12 - (a) Explain how you fit a regression to an Excel...Ch. 12 - (a) Explain the logic of the ordinary least...Ch. 12 - (a) Why cant we use the sum of the residuals to...Ch. 12 - Prob. 6CRCh. 12 - Prob. 7CRCh. 12 - Prob. 8CRCh. 12 - Prob. 9CRCh. 12 - Prob. 10CRCh. 12 - Prob. 11CRCh. 12 - Prob. 12CRCh. 12 - (a) What is heteroscedasticity? Identify its two...Ch. 12 - (a) What is autocorrelation? Identify two main...Ch. 12 - Prob. 15CRCh. 12 - Prob. 16CRCh. 12 - (a) What is a log transform? (b) What are its...Ch. 12 - Prob. 40CECh. 12 - Prob. 41CECh. 12 - Prob. 42CECh. 12 - Prob. 43CECh. 12 - Prob. 44CECh. 12 - Prob. 45CECh. 12 - Prob. 46CECh. 12 - Prob. 47CECh. 12 - Prob. 48CECh. 12 - Prob. 49CECh. 12 - Prob. 50CECh. 12 - Prob. 51CECh. 12 - Prob. 52CECh. 12 - Prob. 53CECh. 12 - Prob. 54CECh. 12 - Prob. 55CECh. 12 - Prob. 56CECh. 12 - Prob. 57CECh. 12 - Prob. 58CECh. 12 - Prob. 59CECh. 12 - In the following regression, X = weekly pay, Y =...Ch. 12 - Prob. 61CECh. 12 - In the following regression, X = total assets (...Ch. 12 - Prob. 63CECh. 12 - Below are percentages for annual sales growth and...Ch. 12 - Prob. 65CECh. 12 - Prob. 66CECh. 12 - Prob. 67CECh. 12 - Simple regression was employed to establish the...Ch. 12 - Prob. 69CECh. 12 - Prob. 70CECh. 12 - Prob. 71CECh. 12 - Below are revenue and profit (both in billions)...Ch. 12 - Below are fitted regressions based on used vehicle...Ch. 12 - Below are results of a regression of Y = average...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- To perform a test to determine whether we have a significant linear relationship using an F test, your friend tells you to compute a two-sided p-value. Is this correct and why?arrow_forwardResearchers ran a multiple linear regression to determine if belief accuracy in a political claim when given misinformation was related to the following independent variables: One’s level of anger (coded low = 0, high = 1) One’s level of anxiety (coded low = 0, high = 1) Whether the source of misinformation about the claim came from their own political party (in-party, coded from the other party = 0, from their party = 1) Whether or not a correction of misinformation was made (coded correction without evidence = 0, correction with evidence = 1) One’s political knowledge (continuous measurement from 0-4) One of the two issues in question (coded illegal immigration = 0, death penalty = 1) 4. The Adjusted R2 for Model 3 is 0.193. How would one interpret this? 5. In putting together a final model, would you want to remove any variables from Model 3? Why or why not? 6. They did not report standardized regression coefficients (β’s). What would the standardized regression…arrow_forwarda) what is the regression equation? b) what is the predicted weight of the bear? c) is the result close to the actual weight of 528 pounds?arrow_forward
- Carrie and Ryan have both computed the slope of the least-squares line using data for which the standard deviation of the x-values and the standard deviation of the y-values are equal. Carrie gets a value of 0.5 for the slope, and Ryan gets a value of 2. One of them is right. Which one?arrow_forwardEleven states were randomly selected from among the 50 United States. This data represents the percentage of households in each state that are below the poverty level (Poverty Rate) based on household income and the percentage of adults in the state who had earned at least a high school degree (HS and Above). (a) Describe the relationship between the variables. (b) What is the slope of the least-squares regression line for this data? Interpret this value. (c) Predict the percent of adults who had attained at least a high school degree for the state with a poverty rate of 15%? Show your work. (d) Find the residual for the state with a poverty rate of 15%. Interpret the residual.arrow_forwardThe regression equation is intended to be the “best fitting” straight line for a set of data. What is the criterion for “best fitting”?arrow_forward
- The options for part b are: head circumference or heightarrow_forward2b) • Using a Graphing calculator or spreadsheet program, create the least squares regression line of the median student loan debt for graduates versus the average salary after 10 years. Be sure to define any variables. • Identify and interpret the correlation coefficient and coefficient of determination. • By looking at the scatterplot and the least squares regression line, determine the college that you believe is the best value. Explain your reasoning. • Using the college (Harvard University) you chose, identify and interpret its residual based on the least squares regression model.arrow_forwardThe Heights and Weights of 500 preschoolers have correlation r=0.52. The average height is 30.12 Inches, the average weight is 40.90 Pounds, the standard deviation of their heights is 4.16 inches, and the standard deviation of their weight is 6.42 Pounds. 1. What is the equation of the least squares regression line for predicting their weights from their heights? 2. I'm 35 Inches Tall- Predict my weight.arrow_forward
- The table below lists weights (carats) and prices (dollars) of randomly selected diamonds. Find the (a) explained variation, (b) unexplained variation, and (c) indicated prediction interval. There is sufficient evidence o support a claim of a linear correlation, so it is reasonable to use the regression equation when making predictions. For the prediction interval, use a 95% confidence level with a diamond that weighs 0.8 carats. Weight Price 0.3 $508 a. Find the explained variation. 0.4 $1153 0.5 $1332 Round to the nearest whole number as needed.) . Find the unexplained variation. Round to the nearest whole number as needed.) c. Find the indicated prediction interval.arrow_forwardHelp please! (b) Despite the results being statistically significant, the authors stated in their article about the first study: "The field study did not support an examination of why more creative store windows led consumers to enter the stores. … The use of actual retailers' real store windows meant that the level of creativity was not the only variable that differed among the retailers and their windows." How does the second study address some of those drawbacks? Does either study suffer from a lack of realism? Choose the best explanation. A) The drawbacks in the first study were that it was an observational study and that it did not control for confounding variables (such as variations in merchandise and potential customers). The second study addresses these drawbacks by using the same retailer and the same merchandise, and by only changing the creativity of the window display. Neither study suffers from a lack of realism, since statistically significant results were…arrow_forwardIn this question, we investigate the relationship between the top (maximum) speed (mph) and maximum height for a random sample of roller coasters in the United States. Here is the scatterplot and a summary of the simple linear regression model. Construct a 95% confidence interval for the true slope of the regression line and interpret your confidence interval in context.arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillAlgebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningCollege AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
- Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin HarcourtHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Hypothesis Testing using Confidence Interval Approach; Author: BUM2413 Applied Statistics UMP;https://www.youtube.com/watch?v=Hq1l3e9pLyY;License: Standard YouTube License, CC-BY
Hypothesis Testing - Difference of Two Means - Student's -Distribution & Normal Distribution; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=UcZwyzwWU7o;License: Standard Youtube License