Because
r is significant and the scatter plot shows a linear trend, the regression line can be used to predict final exam scores.
Method 2: using a table of critical values to make a decision
The
95% Critical Values of the Sample Correlation Coefficient Table can be used to give you a good idea of whether the computed value of
is significant or not . Compare
r to the appropriate critical value in the table. If
r is not between the positive and negative critical values, then the correlation coefficient is significant. If
r is significant, then you may want to use the line for prediction.
Suppose you computed
r = 0.801 using
n = 10 data points.
df =
n - 2 = 10 - 2 = 8. The critical values associated with
df = 8 are -0.632 and + 0.632. If
r <negative critical value or
r >positive critical value, then
r issignificant. Since
r = 0.801 and 0.801>0.632,
r is significant and the line may be usedfor prediction. If you view this example on a number line, it will help you.
r is not significant between -0.632 and +0.632.
r = 0.801>+0.632. Therefore,
r is significant.
For a given line of best fit, you computed that
r = 0.6501 using
n = 12 data points and the critical value is 0.576. Can the line be used for prediction? Why or why not?
If the scatter plot looks linear then, yes, the line can be used for prediction, because
r >the positive critical value.
Suppose you computed
r = –0.624 with 14 data points.
df = 14 – 2 = 12. The critical values are –0.532 and 0.532. Since –0.624<–0.532,
r is significant and the line can be used for prediction
For a given line of best fit, you compute that
r = 0.5204 using
n = 9 data points, and the critical value is 0.666. Can the line be used for prediction? Why or why not?
No, the line cannot be used for prediction, because
r <the positive critical value.
Suppose you computed
r = 0.776 and
n = 6.
df = 6 – 2 = 4. The critical values are –0.811 and 0.811. Since –0.811<0.776<0.811,
r is not significant, and the line should not be used for prediction.
-0.811<
r = 0.776<0.811. Therefore,
r is not significant.
For a given line of best fit, you compute that
r = –0.7204 using
n = 8 data points, and the critical value is = 0.707. Can the line be used for prediction? Why or why not?
Yes, the line can be used for prediction, because r<the negative critical value.
Third-exam vs final-exam example: critical value method
Consider the
third exam/final exam example .
The line of best fit is:
ŷ = –173.51+4.83
x with
r = 0.6631 and there are
n = 11 data points. Can the regression line be used for prediction?
Given a third-exam score (
x value), can we use the line to predict the final exam score (predicted
y value)?
H
0 :
ρ = 0
H
a :
ρ ≠ 0
α = 0.05
Use the "95% Critical Value" table for
r with
df =
n – 2 = 11 – 2 = 9.
The critical values are –0.602 and +0.602
Since 0.6631>0.602,
r is significant.
Decision: Reject the null hypothesis.
Conclusion:There is sufficient evidence to conclude that there is a significant linear relationship between the third exam score (
x ) and the final exam score (
y ) because the correlation coefficient is significantly different from zero.
Questions & Answers
differentiate between demand and supply
giving examples
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
When MP₁ becomes negative, TP start to decline.
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 •
Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 •
Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
ok
Shukri
how do you save a country economic situation when it's falling apart
Economic growth as an increase in the production and consumption of goods and services within an economy.but
Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
thank you so much 👍 sir
Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has
The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50.
A,Calculate quantities of x and y which maximize utility.
B,Calculate value of Lagrange multiplier.
C,Calculate quantities of X and Y consumed with a given price.
D,alculate optimum level of output .
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
