Question

In: Economics

1.For a certain data set, r=0.57. Say whether the following statements are true or false and...

1.For a certain data set, r=0.57. Say whether the following statements are true or false and explain.

a.There are no outliers

b.There is anon-linear association.

2.True/False: average values of x correspond to above average values of y. Explain.

Solutions

Expert Solution

Let's assume that there are two variables in the dataset x and y between which we have been given the correlation coefficient (r = 0.57).

Correlation coefficient of magnitude between 0.5 and 0.7 are considered as moderately correlated.

a. False, Note that irrespective of the r or correlation coefficient, outliers can be present in the data set. Even if correlation coefficient is 0.9, although the two variables are strongly correlated, there can still be some of the data points which are far away from majority of the data points in the data set.

b. False, we can't be sure of kind of association be just looking at correlation coefficient. Note that, although the two variables are moderately correlated, but the association can be either of linear or non- linear nature. Once we plot the data points on the graph, then only looking at kind of trend we get one can be sure of the linear or non-linear association.

c. False, Average values of x may or may not correspond strongly with each other given the correlation between the two variables is moderate.


Related Solutions

1 True/False For each of the following statements say whether it is true or false and...
1 True/False For each of the following statements say whether it is true or false and explain why using a couple of sentences, graphs or equations. (a) If marginal cost of serving two markets is identical, then an internationally discriminating monopolist would set the same price in both markets. (b) Granting a market economy status to China would make it more difficult to impose antidumping duties on Chinese firms.
For each of the following statements, say whether it is true or false. Give a brief...
For each of the following statements, say whether it is true or false. Give a brief argument and/or an example to explain your answer. (a) "In some sequential move games there is a first-mover advantage; in others there is a second-mover advantage." (b) "Game theory shows how the rational behavior by individual players leads to outcomes that are socially optimal".
Indicate whether the following statements are (True) or (False) and correct the False statements:
 Indicate whether the following statements are (True) or (False) and correct the False statements: 1. The corporate treasurer typically handles both cost accounting and financial accounting. 2. Marginal analysis states that financial decisions should be made and actions taken only when added benefits are greater than zero. ( 3. The conflict between the goal of a firm's owners and the goal of its non-owner managers is incompatibility. () 4. The sale of either bonds or stocks to the general public is called private placement....
PROBLEM #1:TRUE of FALSE For each of the following statements, determine whether it is true or...
PROBLEM #1:TRUE of FALSE For each of the following statements, determine whether it is true or false. Label “T” if it is true, otherwise label “F”. 1-a. If two distributions have the same moment-generating function, then they are identical at almost all points. For a random variable X, if its moments of order k (k > 0) exist, then its moment generating function is continuously differentiable up to order k. 1-b. LetXbearandomvariablewiththeprobabilitydensityfunctionp(x)=ca/(a+x2) where c, a are positive constants and a...
Indicate whether each of the following statements is true or false. 1. The corporation is an...
Indicate whether each of the following statements is true or false. 1. The corporation is an entity separate and distinct from its owners. 2. The liability of stockholders is normally limited to their investment in the corporation. 3. The relative lack of government regulation is an advantage of the corporate form of business. 4. There is no journal entry to record the authorization of capital stock. 5. No-par value stock is quite rare today.
True or false: For each of the statements, determine whether it is true or false, then...
True or false: For each of the statements, determine whether it is true or false, then explain in a few sentences why that is the answer. Note: no marks will be given for answers that do not include an explanation. 1. If money stops being a reliable store of value, then it ceases to be useful as a medium of exchange. 2. The gold standard is an improvement over actual gold coinage because it allows the government/central bank to control...
Indicate whether the following statements are always true or can be false. True False  If an object's...
Indicate whether the following statements are always true or can be false. True False  If an object's speed does not change, no net force is acting on the object. True False  If two objects are under the influence of equal forces, they have the same acceleration. True False  The net force which acts on an object which maintains a constant velocity is zero. True False  An object's velocity will change if a net force acts on the object. True False  A truck initially moving at...
Indicate whether each of the following statements is true or false. If it is false, you...
Indicate whether each of the following statements is true or false. If it is false, you must explain why it is false (you can use equations as part of an explanation when needed). Not explaining is the same thing as not answering. If it is true, no explanation is needed: a.   The Romer model is useful because it allows us to explain why poorer countries grow faster than richer countries. b.   The main difference between the Solow model and the...
Determine whether each of the following statements is true or false. If the statement is false,...
Determine whether each of the following statements is true or false. If the statement is false, modify and rewrite it so that it is a true statement. a. When a molecule has two, degenerate, “infrared active”, vibrational modes, the two vibrational modes will show absorptions at different frequencies in the infrared spectrum. b. For a given substance, strong intermolecular forces between molecules of the substance can cause peak broadening of some of the absorptions in the infrared spectrum of the...
True or False. 1. If the set {v1,v2} is a basis of R^2, then the set...
True or False. 1. If the set {v1,v2} is a basis of R^2, then the set {v1,v1+v2} is also a basis of R^2. 2.If W be a vector space and V1,V2 are subspaces of W, then V1 u V2 is also a subspace of W. V1 u V2 denotes the union of V1 and V2, i.e. the set of vectors which belong to either V1 or V2 (or to both). 3.If W be a vector space and V1,V2 are subspaces...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT