Statistics

Homework Assignment #8

Name: __________________________

All calculations should be done in Word using Equation Editor and all charts and graphs should be done in Excel.

Use the output below to answer the following questions.

A financial advisor wants to know if there is a relationship between 401K savings and investment banking.

Does 401k Savings predict good Investments in banking? The results are as follows:

Regression Statistics
R Square	0.8891
Adjusted R Square	0.8735
Observations	9

ANOVA

	df	SS	MS	F	Significance F
Regression	1	175.34	175.34	??	0.000198
Residual	??	24.548	??
Total	??	??

Variable	Coefficient	Standard Error	T value	P value	Lower 95%	Upper 95%
Intercept	0.579	1.6891	??	0.8358	??	??
401k	3.345	0.6992	??	0.000198	??	??

1)

Fill in the tables with the missing values? (You should have 11 different values you need to find)

2)

What is the correlation coefficient of the model?

3)

What is the coefficient of determination?

4)

What is the estimated regression equation?

5)

Interpret the slope.

6)

What is the hypothesis scenario?

7)

Use the estimated regression equation to predict Investments with a 401k of 4.

8)

Would your predicted in #7 be interpolation or extrapolation? Why? (Hint: Use the 95% Confidence Interval for reference)

9)

Is there evidence of a significant relationship between 401k and Investments? Use alpha = .05.

10)

One pair of data in this sample is (7, 26). Which says that 401k of 7 had an Investments of 26, calculate a residual for this data point.

11)

What is the standard error of the estimated regression line?