Suppose you are interested in buying a new Lincoln Navigator or Town Car. You are standing on
Question:
Parts (a) and (b) relate to testing p. Part (c) requests the value of Se. Part (e) relates to confidence intervals for prediction. Part (f) relates to testing β.
Answers may vary due to rounding.
(a) Verify that x = 193.5, y = 177.2, x2 = 7676.71, y2 = 6432.5, xy = 7023.19, and r 0.977.
(b) Use a 1% level of significance to test the claim that p > 0.
(c) Verify that Se 1.5223, a 1.4084, and b 0.8794.
(d) Find the predicted dealer invoice when the list price is x = 40 (thousand dollars).
(e) Find a 95% confidence interval for y when x = 40 (thousand dollars).
(f) Use a 1% level of significance to test the claim that β > 0.
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
Step by Step Answer:
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase