Q1. Define/outline the following: a. the difference between a ‘one-tailed test’ and a ‘two-tailed test’. b. the importance...

70.2K

Verified Solution

Question

Advance Math

Q1. Define/outline the following:
a. the difference between a ‘one-tailed test’ and a ‘two-tailedtest’.
b. the importance of sample size in the context of OLSregression.
*c. four different types of data structures and discuss theirpotential usefulness and application in finance.
d. the OLS assumptions
e. Correlation is not causation. Briefly discuss.
(c. is the part I'm confused most about)

Answer & Explanation Solved by verified expert

3.5 Ratings (283 Votes)

a Differences Between Onetailed and Twotailed TestThe fundamental differences between onetailed and twotailedtest is explained below in pointsOnetailed test as the name suggest is the statisticalhypothesis test in which the alternative hypothesis has a singleend On the other hand twotailed test implies the hypothesistest wherein the alternative hypothesis has dual endsIn the onetailed test the alternative hypothesis isrepresented directionally Conversely the twotailed test is anondirectional hypothesis testIn a onetailed test the region of rejection is either on theleft or right of the sampling distribution On the contrary theregion of rejection is on both the sides of the samplingdistributionA onetailed test is used to ascertain if there is anyrelationship between variables in a single direction ie left orright As against this the twotailed test is used to identifywhether or not there is any relationship between variables ineither directionIn a onetailed test the test parameter calculated is more orless than the critical value Unlike twotailed test the resultobtained is within or outside critical valueWhen an alternative hypothesis has sign then a twotailedtest is performed In contrast when an alternative hypothesis has or sign then onetailed test is carried outd The Seven Classical OLS AssumptionsAssumption 1 The regression model is linear in the coefficientsand the error termThis assumption addresses the functional form of the model Instatistics a regression model is linear when all terms in themodel are either the constant or a parameter See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!

Become a Member

Q1. Define/outline the following: a. the difference between a ‘one-tailed test’ and a ‘two-tailed test’. b. the importance...

70.2K

Verified Solution

Question

Advance Math

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

polar covalent Donas ionic bonds Question 17 1 point Listen Which of these bonds will...

2 Two spheres of radii R and R having equal charges are joined together with...

Find the volume of the following figure and round your answer to nearest integer 18...

13 1 point M P Statements MObisects PN and ZP ZN PO ON N Given...

In an ad an item which retails for $400 is for sale stating "take an...

According to the Airports Council International, the busiest airport in the world is Atlanta's Hartsfield...

Mrs Wheeler prepares a list of 43 US presidents 31 of whom served in the...

Archer Manufacturing had sales for the week of $3,145, of which $2,500 was on credit...

Andi deposited 25 million in the bank on March 8, 2020 with an interest rate...

Peters, Chong, and Aaron are dissolving their partnership. Their partnership agreement allocates each partner an...

Century Plumbing Fixtures stock has a Beta of 1.15, the risk-free interest rate is 2.5%,...

Moving to another question will save this response. Question 5 What will be the monthly...