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 42E
To determine
Identify the covariance and correlation coefficient.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Recently the European Community (EC) decided to lower its subsidies to makers of pasta. In deciding by what amount to reduce total subsidies, experiments were carried out for determining the possible reduction in exports, mainly to the United States, that would result from the subsidy reduction. Over a small range of values, economists wanted to test whether there is a positive correlation between level of subsidy and level of exports. A computer simulation of the economic variables involved in the pasta exports market was carried out. The results follow. Assuming that the simulation is an accurate description of reality and that the values obtained may be viewed as a random sample of the populations of possible outcomes, state whether you believe that a positive rank correlation exists between subsidy level and exports level over the short range of values studied Q
What is the relationship between the $ price of paint and the gallon demand for this paint? A random sample of (price, quantity) data for 7 days of operation was obtained. Construct a plot and describe the relationship between quantity and price, with emphasis on any unusual observations.(10, 100) (8, 120) (5, 200) (4, 200) (10, 90) (7, 110) (6, 150)
You are given the following dataset from a sample of the population.
Superhero
Number of Villains Captured
Number of Losses
Average Hours of Sleep
Spiderham
30
9
12
Alligator Loki
50
1
23
Iron Man
20
8
6
Phil Coulson
18
2
8
Yelena Belova
25
5
2
Round all answers to 2 decimal places. IE: 3.567 = 3.57
D. Calculate the correlation between the number of villains captured and average hours of sleep . If answer is negative, include negative sign.
E. Calculate the sample covariance between the average number of losses and average hours of sleep . If answer is negative, include negative sign.
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
- Interpret the coefficients and calculate the price elasticity of soft drink demand.arrow_forwardNow suppose that you instead observe the value of exports for all the different products (e.g., corn, soybeans, pork, dairy products, etc.) that Colombia purchases from the US from 2000 to 2019. What type of data is this? Group of answer choices Panel Random sample Time-series Cross-sectionalarrow_forwardQ5Q6: Both questions correlate with each other. Complete the following using the grapharrow_forward
- How 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_forwardPlease solve questions 15, 16 and 17. The multivariate demand function below will be needed for questions 12-18. Setting: Grapple, Inc. is a leading seller of laptop personal computers. However, they want to become a leading tablet seller, too. Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets. The variables are defined after the function. Qg = 10000 - 25Pg + 20Ph + 30Pr - 15dv - 35Psc - 10Pmm + 0.05Ag + 0.03A -25C + 0.1Y Qg = the number of Grapple tablet computers demanded per week. Pg = the price of each new Grapple tablet (in $). Ph = the price of each Hewpaq tablet (in $). Pr = the price of each Ronova tablet. Pdv = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that enables three-dimensional graphics on a tablet. Two-dimensional graphics is standard equipment). Psc = the price of various screen sizes (in $, a 8 inch is…arrow_forwardYou have been presented with the following data and asked to fit statistical demand functions:PERIOD QUANTITY PRICE INCOME ADVErtising1 120 8 10 3 2 165 4 22 7 3 120 7 20 5 4 165 3 20 8 5 180 4 30 8 6 90 10 19 6 7 150 4 18 10.2 8 190 1.6 25 9.3 9 160 5 30 8 10 200 2 35 9.5Linear Relationshipa. Use any multiple regression packages (eg. SPSS package) to estimate a linear relationship between the dependent variable and the independent variables. b. Is the estimated…arrow_forward
- Southwest Airlines is able to keep fares low, in part because of relatively low maintenance costs on its airplanes. One of the main reasons for the low maintenance costs is that Southwest flies only one type of aircraft, the Boeing 737. However, Southwest flies three different versions of the 737. Suppose Southwest decides to conduct a study to determine whether there is a significant difference in the average annual maintenance costs for the three types of 737s used. a. State an independent variable for such a study. b. What are some of the levels or classifications that might be studied under this variable? c. Give a dependent variable for this study.arrow_forwardA statistics instructor asks each student in his classes to report how much the student spent on textbooks for the semester. The figures reported by students are shown below. 725 735 555 420 385 480 505 270 405 285 585 450 515 560 500 395 545 595 365 455 505 345 555 485 560 475 520 455 355 590 550 495 505 505 495 465 370 355 480 385 515 605 480 410 485 560 475 350 465 435 455 380 320 535 565 520 510 495 485 650 490 295 555 540 565 490 570 380 610 600 390 375 390 335 525 445 540 490 485 555 440 560 405 590 520 470 560 510 340 385 585 635 415 455 590 385 505 510 545 405 470 560 495 515 495 595 565 615 470 680 465 470 310 470 505 465 375 360 650 460 560 500 375 500 370 415 490 440 470 525 535 640 385 475 425 595 505 365 485 495 390 380 585 690 Treat the data above as POPULATION data. 1 The mean expenditure on textbooks by all students is: a $485.38 b $495.29 c $505.40 d $515.71arrow_forwardThe multivariate demand function below will be needed for questions 12-18. Setting: Grapple, Inc. is a leading seller of laptop personal computers. However, they want to become a leading tablet seller, too. Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets. The variables are defined after the function. Qg = 10000 - 25Pg + 20Ph + 30Pr - 15dv - 35Psc - 10Pmm + 0.05Ag + 0.03A -25C + 0.1Y Qg = the number of Grapple tablet computers demanded per week. Pg = the price of each new Grapple tablet (in $). Ph = the price of each Hewpaq tablet (in $). Pr = the price of each Ronova tablet. Pdv = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that enables three-dimensional graphics on a tablet. Two-dimensional graphics is standard equipment). Psc = the price of various screen sizes (in $, a 8 inch is standard, but upgrade options are 10…arrow_forward
- a scatter diagram could help a policy maker decide on the size of a tax cut necessary to increase consumer expenditure by a certain amount true or falsearrow_forwardIn exercise 1, the following estimated regression equation based on 10 observations was presented. y^=29.1270+.5906x1+.4980x2Here SST=6724.125, SSR=6216.375, sb1=.0813, and sb2=.0567. a) Compute MSR and MSE. b) Compute F and perform the appropriate F test. Use α=.05. c) Perform a t test for the significance of β1. Use α=.05. d) Perform a t test for the significance of β2. Use α=.05.arrow_forwardWe have a random sample of workers from a large firm. In 2017, the firm ran a training program. Some workers did the training program, others did not. The firm now wants to assess the effect of the training on earnings. We use the following model to estimate the effect of a training program on annual earnings in 2018: ln(earn2018)=β0+β1train+β2ln(earn2016)+β3educ+β4exper+u where earn2018 = individual total annual earnings in 2018 in dollars train = a dummy variable that takes the value 1 if the individual worker did the training in 2017 and 0 otherwise earn2016 = individual total annual earnings in 2016 in dollars educ = the individual's years of education exper = the individual's years of experience We find: ln(earn2018)^= 11.672 + 0.041train + 0.821ln(earn2016) + 0.037educ + 0.012exper (5.864) (0.019) (0.258) (0.013) (0.007) n=1278, R2= 0.048 Which of the following is the correct interpretation of the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning