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Question: This exercise presents a real example of Simpson's paradox (Wagner, 1982). The total income and total taxes paid in each of five income categories are given for 2 years, 1974 and 1978, in the following table:
a. The "tax rate" for any income category is calculated as tax divided by income. Calculate the tax rates for each income bracket in each year.
b. Calculate the overall tax rate for each of the 2 years.
c. Did the tax rates within each income bracket increase or decrease from 1974 to 1978?
d. Did the overall tax rate increase or decrease from 1974 to 1978?
e. Compare your results in parts (c) and (d). Explain them in terms of Simpson's paradox.
A standard IQ test has mean of 98 and a standard deviation of 16. We want to be 99% certain that we are 8 IQ points of the true mean. Determine the sample size.
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Specify the appropriate null and alternative hypotheses if we wish to test the research hypothesis that the mean GHQ score for all employed men exceeds 10.
Consider the following time series.t 1 2 3 4 5 6 7Yt 120 110 100 96 94 92 88a. Construct a time series plot. What type of pattern exists in the data
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a power company is considering damming a river that has a steady flow rate of 175 m3s. at the location where the dam
Develop a research question that addresses one of the unknowns in the question: Positive interactions between the CEO and board members lead to enhanced and better performance of the Corporation.
Compare two models. Model #1 has an r-squared of .55 and an adjusted r-squared of .50. Model #2 has an r-squared of .52 and an adjusted r-squared of .51. Given this information, what model should you use?
What is the probability that between 44 and 52 (inclusive) CEOs agree that companies should make direct investments in foreign countries?
Please note that for all problems in this course, the standard cut-off for a test of significance will be p
Do students who attend more than 80% of the statistics lectures in a particular statistics class receive higher grades than those who do not?
let x1 x2...xn be independent and no1 distributed. let sn x21...x2n. show that sn is a random variable x2-distributed
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