Mathematical Statistics with Applications
7th Edition
ISBN: 9780495110811
Author: Dennis Wackerly, William Mendenhall, Richard L. Scheaffer
Publisher: Cengage Learning
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Textbook Question
Chapter 11.6, Problem 38E
Refer to Exercise 11.3. Find a 90% confidence interval for E(Y) when x* = 0. Then find 90% confidence intervals for E(Y) when x* = –2 and x* = +2. Compare the lengths of these intervals. Plot these confidence limits on the graph you constructed for Exercise 11.3.
11.3 Fit a straight line to the five data points in the accompanying table. Give the estimates of β0and β1. Plot the points and sketch the fitted line as a check on the calculations.
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A major credit card company is interested in whether there is a linear relationship between its internal rating of a customer’s credit risk and that of an independent rating agency. The company collected a random sample of 200 customers and used the data to test the claim that there is a linear relationship. The following hypotheses were used to test the claim.
H0:β1=0Ha:β1≠0
The test yielded a t-value of 3.34 with a corresponding p-value of 0.001. Which of the following is the correct interpretation of the p-value?
If the alternative hypothesis is true, the probability of observing a test statistic at least as extreme as 3.34 is 0.001.
If the alternative hypothesis is true, the probability of observing a test statistic at least as extreme as 3.34 is 0.001.
A
If the alternative hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001.
If the alternative hypothesis is true, the probability of observing a test statistic of 3.34 or greater…
b) Find the critical value of t for a
90%
confidence interval with
df=58.
Suppose the true inverse demand relation for good X is Qdx = a + bPx + cM + e , and you estimated the parameters to be â = 22, b ˆ = −1.8, σâ = 2.5 , and σb ˆ = 0.7 . Find the approximate 95 percent confidence interval for the true values of a and b.
Chapter 11 Solutions
Mathematical Statistics with Applications
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