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: Flex 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

Suppose you roll, two 6-sided dice (refer back to the sample space in the sample space...

Advanced Time Value of Money Problems Your child was just born and you are planning for...

Critical Thinking 1 Assume you put Mycobacterium smegmatis and Staphylococcus aureus on the same slide...

The midpoint of AB is M 5 5 If the coordinates of A are 7...

Consider an employee s whose earnings in dollars are according to the continuous strea f...

At the beginning of the year, the odometer on an SUV read 37,839 miles. At...

Evaluate without using a calculator log 10 10 000 log 10 10 000

\begin{tabular}{|c|c|c|c|c|} \hline \multirow{3}{*}{\begin{tabular}{l} Year \\ Start \end{tabular}} &...

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented...

OrangeOrange Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates...

. The principal function of an accounting system's computerized controls is: Detecting computer frauds Preventing...

On January 1, Boston Enterprises issues bonds that have a $2,200,000 par value, mature in...