In Order to Predict with 90% Confidence the Expected Value

question 14

Multiple Choice

In order to predict with 90% confidence the expected value of y for a given value of x in a simple linear regression problem,a random sample of 10 observations is taken.Which of the following t-table values listed below would be used?

• A)1.812
• B)1.860
• C)2.228
• D)2.306

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Definitions:

Effective Rate

The interest rate on a loan or financial product, re-calculated annually, which takes into account the effect of compounding.

Compounding Interval

The frequency at which the earned interest is added to the principal balance of an investment, affecting the total compound interest over time.

Monthly Payment

A specified amount of money that a borrower agrees to pay to a lender at regular monthly intervals, often associated with loans or mortgages.

Loan

A sum of money given to a person or entity with the expectation of repayment of the original sum along with agreed interest over a specified period.