Chapter PVII, Problem 11RE

a)

To determine

To test an appropriate hypothesis.

Answer to Problem 11RE

There is no difference between the number of seats predicted for the Democrats and the number they actually held.

Explanation of Solution

Given:

  

Calculation:

The null and alternative hypotheses:

  $\begin{array}{l}{H}_0:{\mu }_D=0\\ H_a:{\mu }_D\ne 0\end{array}$

Using excel,

  

t-stat = 0

P-value = 1

Decision: P-value > 0.05, fail to reject H0.

Conclusion: There is no difference between the number of seats predicted for the Democrats and the number they actually held.

b)

To determine

To test an appropriate hypothesis.

Answer to Problem 11RE

There is evidence to say that strong relationship between the number of seats predicted for the Democrats and the number they actually held.

Explanation of Solution

Given:

  

Calculation:

The null and alternative hypotheses:

  $\begin{array}{l}{H}_0:{\beta }_1=0\\ H_a:{\beta }_1\ne 0\end{array}$

Using excel,

  

t-stat = 22.558

P-value = 0

Decision: P-value < 0.05, reject H0.

Conclusion: There is evidence to say that strong relationship between the number of seats predicted for the Democrats and the number they actually held.