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12.4: the regression equation

13 . r ( s y s x ) = 0.73 ( 9.6 4.0 ) = 1.752 1.75

14 . a = y ¯ b x ¯ = 141.6 1.752 ( 68.4 ) = 21.7632 21.76

15 . y ^ = 21.76 + 1.75 ( 68 ) = 140.76

12.5: correlation coefficient and coefficient of determination

16 . The coefficient of determination is the square of the correlation, or r 2 .
For this data, r 2 = (–0.56)2 = 0.3136 ≈ 0.31 or 31%. This means that 31 percent of the variation in fuel efficiency can be explained by the bodyweight of the automobile.

17 . The coefficient of determination = 0.32 2 = 0.1024. This is the amount of variation in freshman college GPA that can be explained by high school GPA. The amount that cannot be explained is 1 – 0.1024 = 0.8976 ≈ 0.90. So about 90 percent of variance in freshman college GPA in this data is not explained by high school GPA.

18 . r = r 2
0.5 = 0.707106781 0.71
You need a correlation of 0.71 or higher to have a coefficient of determination of at least 0.5.

12.6: testing the significance of the correlation coefficient

19 . H 0 : ρ = 0
H a : ρ ≠ 0

20 . t = r n 2 1 r 2 = 0.33 30 2 1 0.33 2 = 1.85
The critical value for α = 0.05 for a two-tailed test using the t 29 distribution is 2.045. Your value is less than this, so you fail to reject the null hypothesis and conclude that the study produced no evidence that the variables are significantly correlated.
Using the calculator function tcdf, the p -value is 2tcdf(1.85, 10^99, 29) = 0.0373. Do not reject the null hypothesis and conclude that the study produced no evidence that the variables are significantly correlated.

21 . t = r n 2 1 r 2 = 0.45 25 2 1 0.45 2 = 2.417
The critical value for α = 0.05 for a two-tailed test using the t 24 distribution is 2.064. Your value is greater than this, so you reject the null hypothesis and conclude that the study produced evidence that the variables are significantly correlated.
Using the calculator function tcdf, the p-value is 2tcdf(2.417, 10^99, 24) = 0.0118. Reject the null hypothesis and conclude that the study produced evidence that the variables are significantly correlated.

12.7: prediction

22 . y ^ = 25 + 16 ( 5 ) = 105

23 . Because the intercept appears in both predicted values, you can ignore it in calculating a predicted difference score. The difference in grams of fiber per serving is 6 – 3 = 3 and the predicted difference in grams of potassium per serving is (16)(3) = 48.

12.8: outliers

24 . An outlier is an observed value that is far from the least squares regression line. A rule of thumb is that a point more than two standard deviations of the residuals from its predicted value on the least squares regression line is an outlier.

25 . An influential point is an observed value in a data set that is far from other points in the data set, in a horizontal direction. Unlike an outlier, an influential point is determined by its relationship with other values in the data set, not by its relationship to the regression line.

26 . The predicted value for y is: y ^ = 5 + 0.3 x = 5.6 . The value of 6.2 is less than two standard deviations from the predicted value, so it does not qualify as an outlier.
Residual for (2, 6.2): 6.2 – 5.6 = 0.6 (0.6<2(0.4))

Questions & Answers

it is the relatively stable flow of income
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Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
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is gdp a reliable measurement of wealth
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introduction to econometrics
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Tom
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bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
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Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
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Yoal
Economic growth Stable prices and low unemployment
Ephraim
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Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
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Chisomo
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Beshir
Criteria for determining money supply
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Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
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it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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Kalombe
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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