Calculate chi-square is less than the critical value

Reference no: EM1316165

Test the significance of the sample correlation and develop regression equation with scatter plot.

1. In the chi-square test, the null hypothesis (no difference between sets of observed and expected frequencies) is rejected when the

A) Computed chi-square is less than the critical value.

B) Difference between the observed and expected frequencies is significant.

C) Difference between the observed and expected frequencies is small.

D) Difference between the observed and expected frequencies occurs by chance.

E) None of the above.

2.Sample Number		Assets ($ millions)	Return (%)
1	AARP	622.2	10.8
2	Babson	160.4	11.3
3	Compass	275.7	11.4
4	Galaxy	433.2	9.1
5	Keystone	437.9	9.2
6	MFS Bond A	494.5	11.6
7	Nichols	158.3	9.5
8	T Rowe	681	8.2
9	Thompson	241.3	6.8

The table above contains data from 9 mutual funds -- total assets held by the fund and last year\\\'s return on the investment of the assets (cash). Please:

(1) Construct a scatter diagram -- be sure you choose the correct dependent and independent variable. Think about these questions: Which variable influences the other? What is the direction of the relationship? Do assets influence the return or does the return influence the assets? What you choose as the "causing" variable will be X, what you choose as the variable being "caused" or influenced will be Y. Discuss your diagram.

(2) Compute the coefficients of correlation and determination and discuss what they mean.

(3) Test the significance of the sample correlation computed in #2.

(4) Develop a regression equation. What return would you predict for $400M in assets? Is the regression equation you developed meaningful? Why or why not?

Be sure to highlight every statistic needed to address the problem and discuss what each means. Be sure to show all 5 steps necessary to test the significance of the correlation.

Reference no: EM1316165

Questions Cloud

Evaluation of current price of the stock : Evaluation of current price of the stock - What is the current value of a share of Bollinger's stock to an investor who requires a 15 per cent required rate of return.

Elimination or substitution method to solve the equations : Elimination or substitution method to solve the equations.

Computation of financial and operating levarages : Computation of financial and operating and combined levarages and Fastron has 1 million shares of common stock outstanding

Calculating confidence interval : Calculate a 95% confidence interval for the population mean, based on the sample 10, 12, 13, 14, 15, 16, and 49.

Calculate chi-square is less than the critical value : Testout the significance of the sample correlation also develop regression equation with scatter plot. Calculate chi-square is less than the critical value

Change in budget line-increase in tax by government : Suppose instead that the government wishes to impose a value tax of $0.25 on each dollar of the consumer's expenditure on good 1.Show the effect of imposing this tax in a graph containing before and after budget lines.

Evaluate the price of stock using dividend discount model : Evaluate the price of stock using dividend discount model and how much are you willing to pay for the stock

The probability that a sheet selected at random : The population of lengths of aluminium-coated steel sheets is normally distributed with a mean of 30.05 inches and a standard deviation of 0.2 inches.

Evidence of the population mean : By using the 0.10 level of significance, is there evidence that the population mean is above the $300?

User Account

All Pages