EC315_HW5_JamieGossett

EC315_HW5_JamieGossett - where is an average of x and y we...

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Jamie Gossett Week 5 – HW – EC 315 40. (A) (B) r = 0.44, there is a WEAK positive correlation. (C) df = n-2 = 25-2 = 23 α = 0.05 one-tailed critical value T = 1.319 Test statistic T = r*Sqrt[(n-2)/(1-r²)] = 0.44*Sqrt[(25-2)/(1-0.44²)] = 2.35 Conclusion: Since 2.35 > 1.319 we conclude that there is a positive relationship between the
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variables. (D) r² = 0.44² = 0.1936, so approximately 19% of the variation in revenue is explained by the variation in the number of rooms occupied. 44. (A) The regression equation is y=ax+b. a = -1.74251, b = 19.11976, so our regression equation is y = -1.74251x + 19.11976. If x = 7 then y = -1.74251*7+19.11976 = 6.92219 (B) 2) The correlation coefficient is calculated by formula
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Unformatted text preview: where is an average of x and y. we get that r=0.30722002. Determination coefficient is equal to =0.09438414 We check the hypothesis that a=0. Firstly we calculate the regression coefficients. We get that a=25.641, b=67.1794. Then we calculate the value of statistics , where . If our hypothesis is true then t has Student distribution with N-2=10 degrees of freedom. We get t=1.021 which does not exceed the critical value of 2.633769. So the hypothesis is not rejected and we conclude that there is no positive association between the size of the home and the selling price....
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EC315_HW5_JamieGossett - where is an average of x and y we...

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