Decide, at the Given Significance Level, Whether the Data Provide

question 21

Essay

Decide, at the given significance level, whether the data provide sufficient evidence to conclude that x is useful forpredicting y.
-Decide, at the 10% significance level, whether the data provide sufficient evidence to conclude that x is a useful predictor of y. $$\begin{array} { r | r r r r l } \mathrm { x } & 2 & 4 & 5 & 6 \\ \hline \mathrm { y } & 7 & 11 & 13 & 20 \end{array} \quad \hat { y } = 3 \mathrm { x }$$

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Definitions:

Income Effect

The correlation between income changes in an economy or for individuals and their effect on the quantity of goods and services demanded.

Opportunity Cost

The value of the next best alternative that is foregone when a decision is made to choose one option over another.

Leisure Time

Free time in which an individual is not working, is not engaged in compulsory activities, and can choose activities for relaxation, enjoyment, or other personal development.

Labor Market

The supply of available workers in relation to available work, and the dynamics of wages, employment, and income.