Documente Academic
Documente Profesional
Documente Cultură
sales are related to the industry sales. He uses Microsoft Excel's Data Analysis tool to
analyze the last 4 years of quarterly data (i.e., n = 16) with the following results:
Regression Statistics
Multiple R 0.802
R Square 0.643
Adjusted R Square 0.618
Standard Error SYX 0.9224
Observations 16
ANOVA
df SS MS F Sig.F
Regression 1 21.497 21.497 25.27 0.000
Error 14 11.912 0.851
Total 15 33.409
a) What is the value of the quantity that the least squares regression line minimizes?
Explain your answer.
In the least squares regression line minimizes the sum of the squares of the deviations
from the actual values to its predicted values. The minimized the sums of the squares of
these errors to the value zero. If the sum of the squares of these values zero, the line of
regression is best fit to the given data.
In otherwords, the difference between the actual value and predicted values becomes
zero.
b) What is the prediction of Y for a quarter in which X = 120? Show how you obtain your
answer.
a) To test whether the prison stocks portfolio is negatively related to the S&P 500 index,
the appropriate null and alternative hypotheses are, respectively,
A) H0 : 0 vs. H1 : < 0
B) H0 : 0 vs. H1 : > 0
C) H0 : r 0 vs. H1 : r < 0
D) H0 : r 0 vs. H1 : r > 0
b) To test whether the prison stocks portfolio is negatively related to the S&P 500 index,
what is the measured value of the test statistic?
c) To test whether the prison stocks portfolio is negatively related to the S&P 500 index,
what is the p-value of the associated test statistic?
Regression Statistics
Multiple R 0.7598
R Square 0.5774
Adjusted R Square 0.5069
Standard Error 0.2691
Observations 8
ANOVA
df SS MS F Significance F
Regression 1 0.5940 0.5940 8.1986 0.0286
Residual 6 0.4347 0.0724
Total 7 1.0287
b) What is the value of the measured test statistic to test whether there is any linear
relationship between GPA and ACT?
The measure test statistic to test whether there is any linear relationship between GPA
and ACT is t stat = coefficient of ACT/SE of ACT = 2.8663
c) What is the predicted average value of GPA when ACT = 20? Show how you obtain
your answer.
d) What are the decision and conclusion on testing whether there is any linear
relationship at 1% level of significance between GPA and ACT scores? Explain your
answer.
The test statistic to test the linear relationship between GPA and ACT scores is
2.8663 and the corresponding p value is 0.0286.
Since p value 0.0286 is greater than 0.01 conclude that there is no significant
relationship between GPA and ACT.