Thomas Euriga
There are four principal assumptions which justify the use of linear regression models:
Linearity and additivity of the relationship between dependent and independent variables
1. The expected value of dependent variable is a straight-line f

Thomas Euriga
Chapter 13 p. 609 #4
250
200
150
100
50
0
50
a.
b.
c.
d.
e.
f.
g.
100
150
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250
B1 = .8357 b0 = 17.2366
Ha: P = 0, Ho: P does not = 0, Ho: P>a Yes there is evidence of linear relationship
Variance of error = 82.507
T value = 2.306
Variance

Weekly and hourly earnings data from the Current Population Survey
Original Data Value
Series Id:
LEU0254524600
Not Seasonally Adjusted
Series title:
(unadj)- Median usual weekly earnings (second quartile), Employed
full time, Wage and salary workers, Man

Thomas Euriga
Chapter 12
p. 547 #14
P < or = to .80
P > .80
a. 54 / 65 = .831
(.831 - .80) / .80 * (1-.80) / 65 = .62
P Value = 0.2676
b. .2676 > .05 = Fail to reject
p. 551 #6
p1 > or = to p2
p1 < p2
a. 75 73 + 1.28 = 2
Square (64 / 41) + (81 / 31) = 2.0

Thomas Euriga
Chapter 8: p. 363 #4
a. 800 + 830 = 1630 / 2 = 8:15 is the average time of arrival
b. 830 800 = 30 / 3.4641 = 8.66 standard deviation
c. 1 / 830 800 = 1/30
1/30 * (810 800) = 1/30 * 10 = 1/3 or .3333 probability that the employee will be the

Thomas Euriga
Chapter 6: p. 276 #8
a. 270 husbands divided by 1000 policies = .27 probability
b. 80 wives divided by 1000 policies = .08 probability
c. 60 wives divided by 1000 policies = 60/1000
168 husbands divided by 1000 policies = 168/1000
In conclus

Thomas Euriga
Chapter 1: p. 17 #4
A. Identify the population.
A.1. Nonsmoker students from a large Midwestern University
B. What characteristics of the population are being measured?
B.1. Nonsmoking women and men
C. Identify the sample.
C.1. 330 Women & 2

Thomas Euriga
Chapter 4: p. 168 #8
a. Parameters
b. I would choose the portfolio with the small deviation because it would be more stable and
predictable
c. Portfolio A 7.07 Portfolio B 33.32 are the standard deviations
d. Portfolio A is closer to predict