Suppose we have sample data on (y,x) of size n. Consider regressing y on x and aconstant using the least square method (OLS estimation). The estimated equation isy = 2.59 +5.19 x + ewhere e is the residual. The standard errors for the constant and the coefficient were0.51 and 1.58 respectively.To test the null hypothesis of zero coefficient (for x) at a given significance level, wemay use t-statistic. Compute the t-statistic for the coefficient.Make sure the answer is round up to the nearest hundredth.e.g. 3.015 --> 3.02

The objective of the question is to compute the t-statistic for the coefficient of x in the given…

Answered: Suppose we have sample data on (y,x) of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you select a random sample of 16 students from a population that has mean of µ = 75 and standard deviation of ơ = 20. You want to know what would be considered a ‘typical’ sample mean for a sample of n = 16. To answer your question, you compute the two sample means that define the middle 95% of the distribution of sample means. Show your work, sketch the distribution, and shade in the area of interest. Hint: Sample means that are in the extreme 5% of the distribution (2.5% in each tail of the distribution) are considered ‘atypical’ or ‘extreme.’
Unanswered 4 attempts left a Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is charged. Suppose a sample of 35 surveys shows a sample mean of 17 minutes. Use o = 4 minutes. a. Formulate the null and alternative hypotheses for this application. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer b Q2a Homework Unanswered Due Apr 4th, 11:50 PM d U Ho H15; HA 15 c Ho με 15; Η, : μ > 15 H : μ > 15; Μ, :μ 15 F Ho:μ > 15; H, μ < 15 8 Ho: H≤15: HA: µ ≥ 15 Unanswered. 4 attempts left Submit Q2b-d Homework Unanswered Due Apr 4th, 11:59 PM Submit
A study compared grade point averages (GPA) for students in a class: students were divided by 6 locations where they usually sat during lecture (i.e. left or right front, left or right center, left or right rear). A total sample size of 12 students was studied (2 students from each section) using one-way analysis of variance. i. The sum of squared errors is SSE = 50. What is the value of the Mean Square Error (MSE )? 08.33 04.17 ONone of these O10.00 ii. The sum of squares for location is SSX= 60. What is the Mean Square for X(MSX )? O12 O10 O30 ONone of these
You have a regression: Ý 0.42 + 0.9 X₁ - 1.37X2 +0.61X3 (0.24) (0.5) (0.34) N = 50, R² = 0.67 What is the test statistic for Ho: B2 B3 B4 = 0 v.s. H₁ at least one of them is not zero. 28.71 31.13 31.8 46.7
Economic topic. Solve it A radio shop sells, on an average, 200 radios per day with a standard deviation of 50 radios After an extensive advertising campaign, the management will compute the average sales for the next 25 days to see whether an improvement has occurred. Assume that the daily sales of radios is normally distributed: (i) Write down the null and the alternative hypotheses. (ii) Test the hypothesis at 5% level of significance if X = 216. %3D (iii) How large must Xbe in order that the null hypothesis is rejected at 5% level of significance.
A service counter manager wishes to ensure that an average of 16 seconds toserve a customer. In order to analyse the efficiency of the service process, he takesa random sample of 56 customers. The mean service time of the sample is 15.8seconds. Assume that the population standard deviation is 0.8 seconds. (a) State the null and the alternative hypotheses for the test (b) Use the p-value approach to test the manager's concern at ? = 0.05. (c) Confirm your result in (ii) by using the critical value approach. (d) State the recommendation that the manager can present to the company.
Suppose that (Yi, Xi) satisfy the least squares assumptions . A random sample of size n = 250 is drawn and yields ^Y= 5.4 + 3.2X, R2 = 0.26, SER = 6.2. (3.1) (1.5)a. Test H0 : β1 = 0 vs. H1 : b1 | 0 at the 5% level.b. Construct a 95% confidence interval for β1.c. Suppose you learned that Yi and Xi were independent. Would you besurprised? Explain.d. Suppose that Yi and Xi are independent and many samples of sizen = 250 are drawn, regressions estimated, and (a) and (b) answered.In what fraction of the samples would H0 from (a) be rejected? Inwhat fraction of samples would the value β1 = 0 be included in theconfidence interval from (b)?
Let x be a random variable representing dividend yield of Australian bank stocks. We mayassume that x has a normal distribution with σ = 2.4%. A random sample of 15 Australianbank stocks has a sample mean of x = 6.83%. For the entire Australian stock market, themean dividend yield is μ = 6.9%. Do these data indicate that the dividend yield of allAustralian bank stocks is higher than 6.9%? Use α = 0.05. What is the value of the teststatistic?
1) A researcher estimates an AR(1) with an intercept and finds that the OLS estimate of β1 is 0.95, with a standard error of 0.02. Does a 95% confidence interval include β1=1? A.Yes, since the value of the t-statistic for the null hypothesis β1=1 is −2.50 and the 5% critical value of the augmented Dickey-Fuller statistic is −2.86, the null hypothesis is not rejected. Thus β1=1 is in the 95% confidence interval. B.No, the interval, calculated as β1±1.96SEβ1, is from 0.91 to 0.99. C.No, since the value of the t-statistic for the null hypothesis β1=1 at the 5% level is −2.50. D.No, because the critical value of the augmented Dickey-Fuller statistic at the 5% significance level is −2.86.
Purchasing power parity (PPP) implies that exchange rate movements should mirror relative price movements between countries in the long run. PPP holds if exchange rate or relative prices adjust negatively to deviations between exchange rates and relative prices. Using 147 annual observations between the U.S. and the U.K. from 1871 to 2017, recent research finds an adjustment of -0.19 with a sample standard deviation of 0.692. a) Based on the research evidence, test if PPP holds at a 3% significance level. Please show the full workings and justify the decision. b) 1%, 5% or 10% levels of significance are only conventional levels of significance. Illustrate how the level of significance is a choice and could vary across contexts.
A hypothesis regarding the weight of newborn infants at a community hospital is that the mean is 6.6 pounds. A sample of seven infants is randomly selected and their weights at birth are recorded as 9.0, 7.3, 6.0, 8.8, 6.8, 8.4, and 6.6 pounds. If α = 0.05, what is the critical t value? 2) A hypothesis regarding the weight of newborn infants at a community hospital is that the mean is 6.6 pounds. A sample of seven infants is randomly selected and their weights at birth are recorded as 9.0, 7.3, 6.0, 8.8, 6.8, 8.4, and 6.6 pounds. what is the degree of freedom
Assume that you have a sample of n, 8, with the sample mean X, 42, and a sample standard deviation of S, = 7, and you have an independent sample of n₂ = 13 from another population with a sample mean of X₂=35 and the sample standard deviation S₂ = 6. Complete parts (a) through (d) below. a. What is the value of the pooled-variance ISTAT test statistic for testing Ho: H+H2? ISTAT = (Round to two decimal places as needed.) b. In finding the critical value, how many degrees of freedom are there? degrees of freedom (Simplify your answer.) c. Using a significance level of a =0.05, what is the critical value for a one-tail test of the hypothesis Ho: H₁5 ₂ against the alternative H₁: ₁₂? The critical value is (Round to two decimal places as needed.) d. What is your statistical decision? OA. Do not reject Ho because the computed ISTAT test statistic is less than the upper-tail critical value. OB. Reject H, because the computed ISTAT test statistic is greater than the upper-tail critical value.…

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