Graded Homework 16

Graded Homework 16 - Graded Homework 16 You have submitted...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Graded Homework 16 You have submitted this Homework 3 times (including this time). You may submit this Homework a total of 40 times and receive full credit. This homework will be due October 21 at 3am. This homework covers the t-test using the correlation coefficient and the Anscombe example (slide 42) and a review of simple linear regression, which can be found in your course packet from page 74 to page 78. Question #1 You have always been told that your car insurance rate will decrease when you become older. Let us check this claim out using the data on 15 persons' ages and their quarterly insurance premiums in dollars. Download the data from here and then run the appropriate regression to test the linear dependence of insurance rate for cars on ages at the 1% level of significance. Hint: there are 5 correct answers
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
We want to test H 0 : β = 0 against alternative H 1 : β ≠‚ 0 We want to test H 0 : β = 0 against alternative H 1 : β < 0 We want to test H 0 : β = 0 against alternative H 1 : β > 0 We want to test H 0 : ρ = 0 against alternative H 1 : ρ ≠‚ 0 We want to test H 0 : ρ = 0 against alternative H 1 : ρ < 0 We want to test H 0 : ρ = 0 against alternative H 1 : ρ > 0 The p-value for the test is 0.009 The p-value for the test is 0.016 The p-value for the test is 0.086 The p-value for the test is 0.170 The p-value for the test is 0.287 We will reject the null hypothesis. We will fail to reject the null hypothesis. We can conclude that insurance premium does depend negatively and linearly on age. There is insufficient evidence to conclude that insurance premium depends negatively and linearly on age. You made all of the correct selections. You received a raw score of 100% on this question. Question #2 Look at the example on page 75 (slide 41) of the course packet. They want you to do a test on the correlation coefficient (that is, a test to see if any linear relationship exists between two variables) between student population size and pizza sales, based on the Armani Pizza example. The data is provided here . Answer the following questions based on your findings. 1. The sample correlation coefficient between sales in thousands of dollars and the number of students in thousands is given by .963366334 = 0.963366334 . If sales was measured in millions of dollars instead of thousands of dollars then the correlation coefficient o would go up
Background image of page 2
o would go down o would stay the same
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

Graded Homework 16 - Graded Homework 16 You have submitted...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online