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The Alternative hypothesis sometimes includes an equal ) sign

Economics Nov 11, 2020

The Alternative hypothesis sometimes includes an equal ) sign. 19. When the null hypothesis is true, there is no possibility of making a Type II error. Chapter 13 20. The error term is the difference between an individual value of the dependent variable and the corresponding mean value of the dependent variable. 21. The residual is the difference between the observed value of the dependent variable and the predicted value of the dependent variable. 22. The slope of the simple linear regression equation represents the average change in the value of the independent variable (X) per unit change in the dependent variable (Y). 23. A significant positive correlation between X and Y does imply that changes in X cause Y to change.

Expert Solution

ANSWER TO FIRST FOUR QUESTIONS

18. FALSE

An alternative hypothesis never has an equal to sign. We can only use not equal to, greater than or less than signs in the alternative hypothesis.

19. TRUE

A type II error is an error term used within the context of hypothesis testing that occurs when one accepts a null hypothesis that is actually false. A Type II error can only exist if the null hypothesis is false. So making a type II error when null hypothesis is true is not a possibility.

20. FALSE

The error term of an observed value is the difference of the observed value from the actual unobserved value in a model

21. TRUE

The difference between the observed value of the dependent variable and its estimated or predicted value is called the residual.

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