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In Exercises \(14.118-14.127\). we repeat the data from Exercises \(14.12-14.21\) and specify an alternative hypothesis for a correlation \(t-\)test. For each exercise, decide at the \(10%\) significance level. whether the data provide sufficient evidence to reject the null hypothesis in favor of the alternative hypothesis.

\(H_{a}:p<0\)

Short Answer

Expert verified

Since, the value do not lie in the rejection region.

Thus, the null hypothesis is not rejected.

Step by step solution

01

Step 1. Given information

The level of significance is \(0.1\) and the data is,

02

Step 2. Calculation

The hypothesis are,

\(H_{0}:\rho=0\)

\(H_{a}:\rho<0\)

The table is shown below.

The value of \(r\) is,

\(r=\frac{\sum x_{i}y_{i}-\sum x_{i}\sum \frac{y_{i}}{n}}{\sqrt{\sum x_{i}^{2}-(\sum x_{i}^{2})}\sqrt{\sum y_{i}^{2}-(\sum y_{i})^{2}}}\)

\(=\frac{-22-(6)\left ( \frac{-9}{3} \right )}{\sqrt{14-\frac{(6)^{2}}{3}}\sqrt{41-\frac{(-9)^{2}}{3}}}\)

\(=-0.7559\)

The value of test statistic is,

\(t=\frac{r}{\sqrt{\frac{1-r^{2}}{n-2}}}\)

\(=\frac{-0.7559}{\sqrt{\frac{1-(-0.7559)^{2}}{3-2}}}\)

\(=-1.15\)

The degree of freedom is,

\(dof=n-2\)

\(=3-2\)

\(=1\)

The curve is shown below.

Since, the value do not lie in the rejection region.

Thus, the null hypothesis is not rejected.

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Most popular questions from this chapter

In this Exercise 14.51, we repeat the information from Exercise 14.15.

a. Decide, at the 10%significance level, whether the data provide sufficient evidence to conclude that xis useful for predicting y:

b. Find a 90%confidence interval for the slope of the population regression line.

role="math" localid="1652333468446" x3412y450-1 role="math" localid="1652333507650" y^=-3+x

a. Obtain a point estimate for the mean tax efficiency of all mutual fund portfolios with6% of their investments in energy securities,

b. Determine a 95%confidence interval for the mean tax efficiency of all mutual fund portfolios with6% of their investments in energy securities.

c. Find the predicted tax efficiency of a mutual fund portfolio with6% of its investments in energy securities.

d. Determine a95%prediction interval for the tax efficiency of a mutual fund portfolio with 6%of its investments in energy securities.

Acreage and Value. The data from Exercise 14.37for lot size (in acres) and assessed value (in thousands of dollars) for a sample of homes in a particular area are on the WeissStats site.

Based on a sample of data points, what is the best estimate of the population regression line?

Corvette Prices. Use the age and price data for Corvettes from Exercise 14.23.

a. compute the standard error of the estimate and interpret your answer

b. interpret your result from part (a) if the assumptions for regression inferences hold.

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d. decide whether you can reasonably consider Assumptions 1-3 for regression inferences to be met by the variables under consideration. (The answer here is subjective, especially in view of the extremely small sample sizes.)

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