3- You want to know if Netflix subscribers are watching Netflix as much as Showtime subscribers...

 

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3- You want to know if Netflix subscribers are watching Netflix as much as Showtime subscribers watch Showtime. You have two random samples: one for Netflix subscribers, and one for Showtime subscribers. Each sample has 500 observations. So, in total you have 1000 observations. For each observation, you know if they are Netflix subscriber or Showtime subscriber (It is either Netflix or Showtime, not both). For each observation, you also know the amount of time (in minutes) that they watch Netflix or Showtime per month (based on if they are Netflix subscriber or Showtime subscriber). Let's get back to your hypothesis. You want to know if the average time Netflix subscribers watch Netflix is equal to the average time Showtime subscribers watch Showtime. How do you test this hypothesis? Explain every step you take (test your hypothesis for 0.05 significant level). 4- You have a dataset for housing market in Manhattan. In your dataset, you have the price of each property sold in Manhattan during the last year. You also have a binary variable called UES which is equal to one if the property is in Upper East Side neighborhood. For properties in other neighborhood, the variable UES is equal to zero. You run the following regression: Price = bo+ b₁ * UES 4a) What this regression can tell you? 4b) Suppose that b₁ is positive and statistically significant. How would you interpret b₁? 5) You run a simple regression model. You r-squared is 0.85. Does this mean that your dependent variable and your independent variable are correlated? 3- You want to know if Netflix subscribers are watching Netflix as much as Showtime subscribers watch Showtime. You have two random samples: one for Netflix subscribers, and one for Showtime subscribers. Each sample has 500 observations. So, in total you have 1000 observations. For each observation, you know if they are Netflix subscriber or Showtime subscriber (It is either Netflix or Showtime, not both). For each observation, you also know the amount of time (in minutes) that they watch Netflix or Showtime per month (based on if they are Netflix subscriber or Showtime subscriber). Let's get back to your hypothesis. You want to know if the average time Netflix subscribers watch Netflix is equal to the average time Showtime subscribers watch Showtime. How do you test this hypothesis? Explain every step you take (test your hypothesis for 0.05 significant level). 4- You have a dataset for housing market in Manhattan. In your dataset, you have the price of each property sold in Manhattan during the last year. You also have a binary variable called UES which is equal to one if the property is in Upper East Side neighborhood. For properties in other neighborhood, the variable UES is equal to zero. You run the following regression: Price = bo+ b₁ * UES 4a) What this regression can tell you? 4b) Suppose that b₁ is positive and statistically significant. How would you interpret b₁? 5) You run a simple regression model. You r-squared is 0.85. Does this mean that your dependent variable and your independent variable are correlated?

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3 The first step is to calculate the means for each group Then we can use a ttest to test the hypoth... View the full answer