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The Null Hypothesis - H0: The random errors will be normally distributed
The Alternative Hypothesis - H1: The random errors are not normally distributed
Reject H0: when P-value ≤ α = 0.05
As the P value is 0.043 it is less than the 0.05 significance level therefore reject H0 and accept H1 as there is sufficient evidence to show that random errors are not normally distributed. The assumption of normality is possibly satisfied as the normal probability plot is close to the straight line.
A salesperson visits from house to house to sell her knives. The probability that she makes a sale at a random house is .3. Given that she makes a sale, the sale is worth $100 with
introduction of median
Exercise: (Binomial and Continuous Model.) Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d = 0:0562, S0 = 100, T = 1, 4t = 1=12. Note that u
Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads "maximum capacity 1400kg or 20 persons". Suppose that the weights of lift-users are
Scatter Diagram The first step in correlation analysis is to visualize the relationship. For each unit of observation in correlation analysis there is a pair of numerical value
how to compute reliability coefficient for extracted factors in factor analysis?
The box plot displays the diversity of data for the income; the data ranges from 20 being the minimum value and 1110 being the maximum value. The box plot is positively skewed at 4
1. Definition of decision tree, 2. Feature of decision theory problem
For calculating the mode of the grouped data graphically, the following procedure is adopted. Draw a histogram of the data; the modal class is the tallest rectangle.
Mode Mode is the value of the observation which occurs with the greatest frequency and thus it is the most fashionable value, Mode has been derived from French word La m
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