Question

Q3 If DW is 1.5. What is the correlation coefficient between Te and u-i? at is the correlation coefficient between i and e-(5
0 0
Add a comment Improve this question Transcribed image text
Answer #1

DW statistic is 1.5=d

We know that

d=2(1-¶)

Where ¶= correlation coefficient

1.5=2(1-¶)

0.75=1-¶

¶=0.25

Therefore correlation coefficient is 0.25

Ans b)

If error term is heteroskedastic then standard error is incorrect Standard error = Standard deviation / sqrt(sample size) that means we get biased estates

In calculation of t statistic we divide sample estimate by standard error and standard errors are biased hence obtained t values are not correct

Hence statement is False.

Add a comment
Know the answer?
Add Answer to:
Q3 If DW is 1.5. What is the correlation coefficient between Te and u-i? at is the correlation coefficient between...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 4.he sample correlation coefficient between X and Y, rxy Sx/Sx S where S-the covariance between X...

    4.he sample correlation coefficient between X and Y, rxy Sx/Sx S where S-the covariance between X and Ys Σ(X-XM) (-Yu)/ n-1 Sx the standard deviation of X and Sy the standard deviation of Y I) If the covariance is positive, the correlation coefficient must be positive: True or False? ii) If the covariance is negative, the correlation coefficient must be positive: True or False? a) ii) The correlation coefficient must lie between 0 and 1. True or False? v)lf the...

  • 2. You are the chief analyst to monitor an eastern city's expenditures. Using the city's quarterly in billi...

    2. You are the chief analyst to monitor an eastern city's expenditures. Using the city's quarterly in billion dollars from 2007-01 to 2014-03, you are trying to model: y.-As + βι t + ut, where u, ~ N(0, σ2). (a) Supposing 1 for the (i.e., 2 Q3? ty) measured government consumption data starting quarter (i.е., 2007-Q1), then what is , for 2014- (5 marks) (b) Suppose your OLS (ordinary least squares) estimates for the trend model are A 1.62 and...

  • 4 a) Suppose Y X.Show in a diagram this function. What will be the correlation coefficient...

    4 a) Suppose Y X.Show in a diagram this function. What will be the correlation coefficient between X and Y? b)i) If the covariance between two variables is nogative, the correlation coefficient must be positive. True or False? ) If the covariance between two variables is zero. what does it suggest?

  • Determine if the following statement is true or false. A correlation coefficient close to 1 is...

    Determine if the following statement is true or false. A correlation coefficient close to 1 is evidence of a cause-and-effect relationship between the two variables. The statement is true O A. False. Only a correlation coefficient close to 0 indicates a cause-and-effect relationship between the two variables O B. False. A correlation coefficient should not be interpreted as a cause-and-effect relationship O c. True, but only if all the conditions for correlation are met. False. A correla.on coefficient of 1...

  • 2. What is the coefficient of correlation between miles per gallon and weight? What is the...

    2. What is the coefficient of correlation between miles per gallon and weight? What is the sign of the correlation coefficient? Does the coefficient of correlation indicate a strong correlation, weak correlation, or no correlation between the two variables? How do you know? See Step 3 in the Python script. 3. Write the simple linear regression equation for miles per gallon as the response variable and weight as the predictor variable. How might the car rental company use this model?...

  • What does a correlation coefficient of 0 indicate? Choose the correct answer below. O A. There...

    What does a correlation coefficient of 0 indicate? Choose the correct answer below. O A. There is no linear relationship between the two quantitative variables. O B. There is a weak relationship between the two quantitative variables. O C. It indicates a calculation error, as the correlation coefficient cannot be 0. O D. There is a strong relationship between the two quantitative variables. O E. It indicates a non-linear relationship between the two quantitative variables.

  • 1-2. The sample of n = 30 people is selected and the sample correlation between two...

    1-2. The sample of n = 30 people is selected and the sample correlation between two variables is r = 0.468. 1. What is the test statistic value for testing whether the true population correlation coefficient is equal to zero? (calculate t-test statistic)     2. What is the t- critical value for alpha= 0.01. and what you can conclude about population correlation ( is there significant correlation between two variables).

  • What is a correlation? What is a statistically significant correlation? В І U A I 를...

    What is a correlation? What is a statistically significant correlation? В І U A I 를 들 - 트 V HP GO T 12pt Parag

  • I used a bouncy ball and a 100 cm ruler to find the coefficient of restitution...

    I used a bouncy ball and a 100 cm ruler to find the coefficient of restitution apuauadxa inoA Analysis Question Your Answer What are some factors that contributed to your standard Q3 deviation? (In other words, source Your answer for Q3 here of error.) What could you have done in order to reduce the spread in your Q4 data? (In other words, have had a Your answer for Q4 here smaller standard deviation.) The value of the coefficient of restitution...

  • Question 27 (Mandatory) (1 point) When the correlation coefficient between the returns of two securities is...

    Question 27 (Mandatory) (1 point) When the correlation coefficient between the returns of two securities is zero, an investor can still receive benefits from diversifying from combining both securities and the standard deviation of a portfolio consisting of both securities would lower than the weighted sum of the individual securities' standard deviations. True False Question 28 (Mandatory) (1 point) While the individual investor always chooses his/her 'normal' position along the CAL in accordance with his/her level of risk aversion, the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT