Describe the shape and bias of the bootstrap distribution

Reference no: EM131431941

Testing the correlation between debts. In given Exercise, we assessed the significance of the correlation between debt in 2006 and debt in 2007 for 24 countries by creating bootstrap confidence intervals. If a 95% confidence interval does not cover 0, the observed correlation is significantly different from 0 at the α = 0.05 level. Let's do a test that provides a P-value. Carry out a permutation test and give the P-value. What do you conclude? Is your conclusion consistent with your work in Exercise?

Exercise
The correlation between debts. Given Figure shows a strong positive relationship between debt in 2007 and debt in 2006 for 24 countries. Use the bootstrap to perform statistical inference for these data.

(a) Describe the shape and bias of the bootstrap distribution. Do you think that a simple bootstrap inference (t and percentile confidence intervals) is justified? Explain your answer.

(b) Give the BCa and bootstrap percentile 95% confidence intervals for the population correlation. Do they (as expected) agree closely? Do these intervals provide significant evidence at the 5% level that the population correlation is not 0?

703_Figure 1.jpg

Reference no: EM131431941

Questions Cloud

Discuss the vulnerabilities of true teams with examples : Discuss the vulnerabilities of true teams with examples? Explain how did the recent changes in Roles and education of health professionals affected the teamwork in hospitals

What a good contract management system consists : Research online what a good contract management system consists of (for your organization or for any organization), including any formal procedures, what if any training is provided to personnel regarding the system, and who is responsible for imp..

Calculate the unlevered internal rate of return : Calculate the unlevered internal rate of return (IRR). Calculate the unlevered net present value (NPV). What is the equity dividend rate (the before-tax return on equity)? What is the debt coverage ratio?

Geographic trends impact healthcare : How do population trends, demographic trends, psychographic trends, and geographic trends impact healthcare?

Describe the shape and bias of the bootstrap distribution : Describe the shape and bias of the bootstrap distribution. Do you think that a simple bootstrap inference (t and percentile confidence intervals) is justified? Explain your answer.

Statistic for the health of the labor market : In his first State of the Union speech, President Trump said: "Tonight, as I outline the next steps we must take as a country, we must honestly acknowledge the circumstances we inherited. Ninety-four million Americans are out of the labor force." ..

O the federal immigration laws preclude arizonas efforts : What happens when the State and Federal government disagree on the creation and enforcement of laws?Do the federal immigration laws preclude Arizona's efforts at cooperative law enforcement and preempt the four provisions of S.B. 1070 on their fac..

Sketch density curves for two populations : When is a permutation test valid? You want to test the equality of the means of two populations. Sketch density curves for two populations for which a permutation test is valid but a t test is not.

Around to catch fish to sell at the fish market : People come from all around to catch fish to sell at the fish market.The total number of fish caught is F = 10x - x2 where x is the number of fishermen. Suppose it costs each person $20 a day to fish and that fish sell for $10 each at the market.

User Account

All Pages