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The State Department of Taxation wishes to investigate the effect of experience, x, on the amount of time, y, required to fill out Form ST 1040AVG, the state income-averaging form. In order to do this, nine people whose financial status makes income averaging advantageous are chosen at random. Each is asked to fill out the form and report (1) the time y (in hours) required to complete the form and (2) the number of times x (including this one) that he or she has filled out this form. The following data are obtained:
Completion time, 8.0 4.7 3.7 2.8 8.9 5.8 2.0 1.9 3.3
y (in hours)
Experience, x 1 8 4 16 1 2 12 5 3
A model of these data is shown below:
y = βo + β1 (1/x) + €
a) Plot y versus x, with y being the vertical axis.
b) Plot y versus 1/x, with y being the vertical axis. Does this plot support the given simple linear regression model for y? If your answer is yes, what is the dependent variable and what is the independent variable?
In 120 tosses of a coin, 45 heads and 75 tails are observed. Is this a balanced coin? Use a=0.05. (Follow the basic steps of hypothesis testing)
Grouped Data In order to find the median, the median class is to be first located and then interpolation is to be used by assuming that items are evenly spaced over the entire
Consider the following linear regression model: a) What does y and x 1 , x 2 , . . . . x k represent? b) What does β o , β 1 , β 2 , . . . . β k represent?
Scatter Diagram The first step in correlation analysis is to visualize the relationship. For each unit of observation in correlation analysis there is a pair of numerical value
Type of Correlation 1. Positive and Negative Correlation: 2. Simple Partial and Multiple Correlations. 3. Linear and Non linear or Correlations
You are currently working with a supplier who is producing a shaft whose diameter specification is 6.00 ± .003 inches. Currently, the process is yielding shafts wit
Root Mean Square Deviation The standard deviation is also called the ROOT MEAN SQUARE DEVIATION. This is because it is the ROOT (Step 4) of the MEAN (Step 3) o
The PCA is amongst the oldest of the multivariate statistical methods of data reduction. It is a technique for simplifying a dataset, by reducing multidimensional datasets to lower
The Null Hypothesis - H0: The random errors will be normally distributed The Alternative Hypothesis - H1: The random errors are not normally distributed Reject H0: when P-v
WHAT YOU MEAN BY UTILITY OF MANAGERIALECONOMICS
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