13th Edition

ISBN: 9780135960912

Author: MCCLAVE

Publisher: PEARSON CO

Concept explainers

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as p…

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Textbook Question

Chapter 12.3, Problem 12.4LM

Suppose you fit the first-order multiple regression model

y =β_{0 +} β₁ x_{1 +} β₂x_{2 +} ε

to n = 25 data points and obtain the prediction equation

y ^ = 6.4 + 3.1x₁ + .92x₂

The estimated standard deviations of the sampling distributions of β ^ ₁ and β ^ ₂ are 2.3 and .27, respectively.

a. Test H₀: (β₁ = 0 against H_a: β₁ > 0. Use α = .05.

b. Test H₀: (β₂ = 0 against H_a: β₂ ≠ 0. Use α = .05.

c. Find a 90% confidence interval for β₁. Interpret the interval.

d. Find a 99% confidence interval for β₂. Interpret the interval.

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Chapter 12.3, Problem 12.3LM

Chapter 12.3, Problem 12.5LM

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Chapter 12 Solutions

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Solution Summary: The author explains that there is no sufficient evidence to conclude that beta_1>0 at alpha =0.05.

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