ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question

Q1

Dependent
Variable: INTEREST
Method: Least Squares
Date: 08/08/20 Time: 17:38
Sample: 2010M01 2019M12
Included observations: 120
Variable
с
UNEMP
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
Coefficient
9.586787
-1.232859
Std. Error
t-Statistic Prob.
1.478492 6.484167
0.0000
0.267930 -4.601419 0.0000
0.152135 Mean dependent var
0.144949 S.D. dependent var
1.105708 Akaike info criterion
144.2656 Schwarz criterion
-181.3225 Hannan-Quinn criter.
21.17306 Durbin-Watson stat
0.000011
2.799500
1.195761
3.055375
3.101833
3.074242
0.028137
The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). In testing for
the null hypothesis that the coefficient of UNEMP is 0, what is Type II error?
Select one:
a. UNEMP has no effect on INTEREST, but the test accepts the null hypothesis
O b.
UNEMP has some effect on INTEREST, but the test does not reject the null hypothesis
O C. UNEMP has some effect on INTEREST, but the test rejects the null hypothesis
O d. UNEMP has no effect on INTEREST, but the test rejects the null hypothesis
expand button
Transcribed Image Text:Dependent Variable: INTEREST Method: Least Squares Date: 08/08/20 Time: 17:38 Sample: 2010M01 2019M12 Included observations: 120 Variable с UNEMP R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) Coefficient 9.586787 -1.232859 Std. Error t-Statistic Prob. 1.478492 6.484167 0.0000 0.267930 -4.601419 0.0000 0.152135 Mean dependent var 0.144949 S.D. dependent var 1.105708 Akaike info criterion 144.2656 Schwarz criterion -181.3225 Hannan-Quinn criter. 21.17306 Durbin-Watson stat 0.000011 2.799500 1.195761 3.055375 3.101833 3.074242 0.028137 The above is the regression result between the Australian monthly unemployment rate (UNEMP, independent variable) and monthly interest rate (INTEREST, dependent variable). In testing for the null hypothesis that the coefficient of UNEMP is 0, what is Type II error? Select one: a. UNEMP has no effect on INTEREST, but the test accepts the null hypothesis O b. UNEMP has some effect on INTEREST, but the test does not reject the null hypothesis O C. UNEMP has some effect on INTEREST, but the test rejects the null hypothesis O d. UNEMP has no effect on INTEREST, but the test rejects the null hypothesis
Expert Solution
Check Mark
Definition of type 2 error

If we have a particular hypothesis about the population, but we assumed the false null hypothesis. And while working with the samples we also failed to reject the null hypothesis (which was false). Then we can say that we committed the type 2 error. 

Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education