The owner of a retailing organization is interested in the relationship between prices at which a commodity is offered for sale and the quantity sold. The following sample data have been collected. Price (X) 50 60 80 100 120 130 Quantity (Y) 16 19 23 28 36 41 Use the above information to compute the A) OLS estimates of the intercept coefficient (β1) and t
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The owner of a retailing organization is interested in the relationship between prices at which a commodity is
offered for sale and the quantity sold. The following sample data have been collected.
Price (X) 50 60 80 100 120 130
Quantity (Y) 16 19 23 28 36 41
Use the above information to compute the
A) OLS estimates of the intercept coefficient (β1) and the slope coefficient (β2).
B) Calculate the standard error of β2.
C) Check the significance of β2 at 5 % level.
D) Calculate and interpret the Coefficient of determination.
E) Calculate and interpret the Adjusted
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