a. Determine the regression equation. (Round your answers to 4 decimal places.) y = b-1. State the decision rule for 0.05 significance level: Ho: ßs 0; Hh: B > 0. (Round your answer to 3 decimal places.) Reject HO if t> b-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic b-3. Can we conclude that the slope of the regression line is positive? Use the 0.05 significance level. HO. We conclude that the slope of the regression line is positive. c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.
| Size | Price | Size | Price | |||||||
| ($ millions), | per Share, | ($ millions), | per Share, | |||||||
| Company | x | y | Company | x | y | |||||
| 1 | 9.0 | 10.8 | 9 | 160.7 | 11.3 | |||||
| 2 | 94.4 | 11.3 | 10 | 96.5 | 10.6 | |||||
| 3 | 27.3 | 11.2 | 11 | 83.0 | 10.5 | |||||
| 4 | 179.2 | 11.1 | 12 | 23.5 | 10.3 | |||||
| 5 | 71.9 | 11.1 | 13 | 58.7 | 10.7 | |||||
| 6 | 97.9 | 11.2 | 14 | 93.8 | 11.0 | |||||
| 7 | 93.5 | 11.0 | 15 | 34.4 | 10.8 | |||||
| 8 | 70.0 | 10.7 | ||||||||
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a. Determine the regression equation. (Round your answers to 4 decimal places.)
b-1. State the decision rule for 0.05 significance level: H0: β ≤ 0; H1: β > 0. (Round your answer to 3 decimal places.)
b-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
b-3. Can we conclude that the slope of the regression line is positive? Use the 0.05 significance level.
c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)
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