Statistics for Business and Economics
8th Edition
ISBN: 9780132745659
Author: Paul Newbold, William Carlson, Betty Thorne
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2.4, Problem 40E
a)
To determine
Identify the covariance.
b)
To determine
Identify the correlation coefficient.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Econometrics
Thomas Eisensee and David Stromberg wanted to measure how much news coverage of a foreign disaster impacted the amount of disaster relief provided by the U.S. government. They argue that the simple relationship would be biased.
Let X = Minutes of News Coverage and Y= Disaster Aid. Choose a variable X2 that could bias the simple relationship. This variable should impact the amount of coverage and impact the amount of aid for reasons other than purely news coverage.
Eisensee and Stromberg introduce an instrument Z = During the Olympics. Explain how Z could satisfy the relevant and exogenous criteria.
Explain how you could use Z to estimate the impact of X on Y free from X2 bias. Hint: you should mention two stages.
If a change in variable X causes a change in variable Y, variable Xis called the
Select one:
a. independent variable
b. dependent variable
c. explanatory variable
d. B and C
Given the following data table:
X
Y
21
68
72
55
38
59
57
57
45
61
What is the correlation between X and Y? Include 3 decimal places in your answer.
Chapter 2 Solutions
Statistics for Business and Economics
Ch. 2.1 - Prob. 1ECh. 2.1 - Prob. 2ECh. 2.1 - Prob. 3ECh. 2.1 - Prob. 4ECh. 2.1 - Prob. 5ECh. 2.1 - Prob. 6ECh. 2.1 - Prob. 7ECh. 2.1 - Prob. 8ECh. 2.1 - A random sample of 156 grade point averages for...Ch. 2.1 - Prob. 10E
Ch. 2.2 - Prob. 12ECh. 2.2 - Prob. 13ECh. 2.2 - Prob. 14ECh. 2.2 - Prob. 15ECh. 2.2 - Prob. 16ECh. 2.2 - Prob. 17ECh. 2.2 - Prob. 18ECh. 2.2 - Prob. 19ECh. 2.2 - Prob. 20ECh. 2.2 - Prob. 21ECh. 2.2 - Prob. 22ECh. 2.2 - Prob. 23ECh. 2.2 - Prob. 24ECh. 2.3 - Prob. 26ECh. 2.3 - Prob. 27ECh. 2.3 - Prob. 28ECh. 2.3 - Prob. 29ECh. 2.3 - Prob. 30ECh. 2.3 - Prob. 31ECh. 2.3 - Prob. 32ECh. 2.3 - Prob. 33ECh. 2.3 - Prob. 34ECh. 2.4 - Prob. 35ECh. 2.4 - Prob. 36ECh. 2.4 - Prob. 37ECh. 2.4 - Prob. 38ECh. 2.4 - Acme Delivery offers three different shipping...Ch. 2.4 - Prob. 40ECh. 2.4 - Prob. 42ECh. 2.4 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 49ECh. 2 - Prob. 50ECh. 2 - Prob. 51ECh. 2 - Prob. 52ECh. 2 - Prob. 55ECh. 2 - Prob. 56E
Knowledge Booster
Similar questions
- What type pf correlation does the graph show ?arrow_forwardYou are buying boxes of donuts at a bakery. Each box of donuts costs $10. Which of the following statements are true? Choose all answers that apply: Group of answer choices A. The dependent variable is the number of boxes of donuts you buy. B. The independent variable is the number of boxes of donuts you buy. C. The dependent variable is the amount of money you spend on the donuts. D. The independent variable is the amount of money you spend on the donuts.arrow_forwardwhat is correlation cofficientarrow_forward
- The variable shown on the vertical axis is _________ . The units for the variable on the horizontal axis are __________ . There are two ways to view the information presented on the graph. First, the graph tells us the amount a person with a certain income is likely to spend on a car, and second, it tells us the probable income of a person who spent a certain amount on a car. For example, if an individual earned $40,000 last year and purchased a new car, you would expect that person to have paid about _________ for the car. Similarly, if someone just paid $25,000 for a car, you could use this graph to estimate that this person's income was probably around __________ .arrow_forwardAn individual purchases a membership at a wholesale store for $26.50 per year in order to buy guacamole at $2.25 per container. Let x be the quantity of guacamole purchased per year and y be the total amount spent including the membership fee. Complete the table below. Do not include dollar signs in any responses. x 0 2 4 6 8 10 y Determine the slope and vertical intercept of the lineararrow_forwardWhat are the three specific desirable characteristics of an estimator?arrow_forward
- Use bordered determinants to check the following functions for quasiconcavity and quasiconvexity: a) Z=−x2−y2(x,y>0) b) Z=−(x+1)2−(y+2)2(x,y>0).arrow_forwardExplain whether the empirical evidence supports the claim that “investors are solely concerned with mean and variance”arrow_forwardHow would you describe a correlation of -1? Group of answer choices There is a perfect linear relationship between x and y. There is a strong positive relationship between x and y. There is no relationship between x and y. There is a weak negative relationship between x and y. thanksarrow_forward
- Why does dependent variables must covariate in the multivariate analyses like MANOVA/MANCOVA? What happens if they don't covariate, will you be able to proceed in multivariate analyses?arrow_forwardExplain Gauss–Markov Theorem with proof ? How estimators satisfy the equations?arrow_forwardn one sentence, what does it mean for an estimator to be consistent? (Hint: you do not need to state the formal definition of consistency)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you