Which of the following is/are true?
Answer(s): G
As the sample size increases, it becomes easier to test whether the null hypothesis can be rejected at the specified significance level (Intuitively, it is harder for a false hypothesis to hide its falsity when there are a larger number of observations testing its veracity). In fact, the critical t-statistic required to reject the null decreases as the sample size increases for a given level of significance.A higher significance level makes it easier to reject the null hypothesis. This is because you are enforcing a looser standard on rejecting the null (recall that the significance level represents the probability thatyou have rejected the null when, in fact, it is true). In fact, significance level and critical t-statistic are inversely related.R-square is not used in hypothesis testing but in regression analysis, though it does not measure the significance of a regression. A regression with a very low R-square can be highly significant; the low R-square only implies that the behavior of the dependent variable is governed largely by random noise.
How much will $3,250 become after 6 years at 8% per year, compounded annually?
Answer(s): D
On the BAII Plus, press 6 N, 8 I/Y, 3250 PV, 0 PMT, CPT FV. On the HP12C, press 6 n, 8 i, 3250 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
What is the standard error of estimate?
Answer(s): E
All the descriptions are correct for the standard error of estimate.
What does a coefficient of correlation of 0.70 mean?
Answer(s): A
The coefficient of correlation, r, is just the square root of the coefficient of determination r-squared.
A bell-shaped, symmetrical frequency distribution has a mean of 45. If 95% of the observations on the variable fall between 30 and 60, the standard deviation of the variable is:
Answer(s): B
95% of the observations in a bell-shaped, symmetrical frequency distribution lie within approximately 2 standard deviations of the mean. The standard deviation is then (45-30)/2 = 7.50.
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