Given the following points: (-2, 0), (-1,0), (0,1), (1, 1) and (2, 3) What is the slope of the regression line?
Answer(s): E
For this, you need to create tables with columns for X,Y,XY,X^2,Y' and Y-Y'. This will be as follows.XYXY X^2 Y'Y-Y'-2004-0.40.4-10010.3-0.301001011111.7-0.723642.40.6Sum057100N=5.The regression equation is Y' = a + bX.Then to find the slope, which is b, use the formulab = [n(SXY)-(SX)(SY)]/[n(SX^2)-(SX)^2] where here S stands for "Sum of." b = [5(0)-(0)(5)]/[5(10)-0] = 0.7
Which of the following statements regarding confidence levels and/or tests of significance is/are false? Choose the best answer.
Answer(s): F
Remember that the power of the test is equal to (1 - Type II error probability). This is because in most hypothesis tests, the level of significance, denoted by alpha, is set equal to the probability of a Type I error.Statisticians are primarily concerned with the probability of a Type I error, and rarely specify the probability of a Type II error. Determining the probability of a Type II error, which is defined as the act of incorrectly failing to reject the null hypothesis, is inherently difficult to determine. The probability of a Type I error, however, can be determined with relative ease. A Type I error is defined as the act of incorrectly rejecting the null hypothesis.The remaining answers are all correct.
In an investment environment, an initial outlay of $1 grows to $1.23 in 3 years. If you are expecting a cash inflow of $500 in 3 years, what's the present value of the cash flow to you?
Answer(s): C
The discount factor for 3 years is 1/1.23. Hence, the PV of $500 in 3 years is 500/1.23 = 406.5.
The median and the mode of the sample: 3, 2, 4, 5, 6, 99, 99, 100 equal:
Answer(s): D
The mode equals the most common observation; in this case, it is 99.If the number of observations is even, the median is the mean of the two middle observations. In this dataset, arrange the data in ascending order and select the 4th and 5th observations. These happen to be 5 and 6. The median is then 5.5.
What is the proportion of the total area under the normal curve within plus and minus two standard deviation?
Answer(s): B
95% of the area under the curve lies within plus and minus one standard deviation of the mean.
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