Question

16. The correlation coefficient p between two variables is -0.63 for a sample of 20 observations. The null hypothesis is Ho : p = 0. Which of the following is a correct conclusion based on the data given? Use the 0.05 significance level. A. Reject the null H. There is a negative association between the variables. B. Do not reject the null Ho. There is a negative association between the variables C. Reject the null Ho. There is a positive association between the variables. D. There is insufficient information to draw a conclusion. 17. One is interested in the relationship between the sales and the spending on advertising among car makers. To estimate the simple linear regression model with sales as the dependent variable, a random sample of 60 firms is collected. The OLS estimation shows that the standard error of the regression equals 2.45. Which of the following is true about the OLS estimation? A. The total variation of squares must be about 348.15. B. The residual sum of squares is about 360.15. C. The residual sum of squares is about 348.15. D. The explained sum of squares must be greater than 348.15.

Answer 1

L 16 Hoi p=o and f = -0.63 witical value 10.444 sa=0.05 2 n=20 We get to & conclude there af = n2 = 18 . negative apociation option A T 17. n360 2.45 n£ q 22 = <ei? = 2.45 348.15 {e; 2 & 2.453 (60-2) = eplion (c)