Review chapter 10 answers 1. a) Reject H(0) at the .05 level Completed ANOVA table: Source -Between Within Total SS df MS -30.5 4 7.625 134.5 95 1.416 165.0 99
F test statistic = 7.625 / 1.416 = 5.385 F =0.05, df =4, 95 = 2.45 Decision rule: reject
Review chapter 11 answers 1. d 2. b 3. d 4. e should be a with 1 =0 and not 0 5. False .correlation does not mean causation. 6. b 7. b 8. b 9. d t critical value( = 0.05 , df ;n-2 =68) = 2 . 2.53>2 10. a ( two variables: qualitative and quantitative
Problem set #7
1. Suppose that the following equations describe the money market: Md/P=0.8Y-16r Ms/P=800 Y=1100 a) Draw the money demand and money supply curves in a simple graph. b) Find the equilibrium interest rate by setting Ms/P=Md/P and solvin