THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 117

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X₁ is the number of loans,X₂ is the interest rate,and X₃ is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results:
= 5.7 + 0.189x₁ - 1.3x₂ + 0.08x₃,
= 3.2,
= 0.03,
= 0.062,
= 0.17,R² = 0.46,and adjusted
= 0.41.
-What should the null and alternative hypotheses be for β₁?

• A)H₀ : β₁ = 0, H₁ : β₁ > 0
• B)H₀ : β₁ = 0,H₁ : β₁ < 0
• C)H₀ : β₁ ≠ 0,H₁ : β₁ = 0
• D)H₀ : β₁ > 0, H₁ : β₁ < 0

Understand the concepts of Type I and Type II errors in the context of hypothesis testing.

Extract and interpret sample statistics (mean, standard deviation, sample size) from research data.

Understand and apply hypothesis testing for comparing means, including understanding Type I and Type II errors.

Conduct and interpret t-tests for independent samples with either equal or unequal variances.

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Definitions:

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