The data from Exercise 14.43 for volume, in cubic feet, and diameter at breast height, in inches, for 70 shortleaf pines are on the WeissStats site.

Short Answer

Expert verified

(a) For the variables volume and diameter, the regression inferences assumption is broken.

Step by step solution

01

Part (a) Step 1: Given information

Given in the question that, The data from Exercise 14.43 for volume, in cubic feet, and diameter at breast height, in inches, for 70 shortleaf pines are on the WeissStats site.
We need to decide that whether we can reasonably apply the regression t-lest. If so, then also do part (b).

02

Part (a) Step 2: Explanation

Given:

MINITAB is used to create the residual plot.

Minitab Procedure:

To begin, select Start > Regression > Regression.

Step 2: In the Response field, type VOLUME.

Step 3: Select Column DIAMETER in Predictors.

Step 4: In Graphs, under Residuals vs the variables, enter the columns DIAMETER.

Step 5: Click the OK button.

OUTPUT FROM MINITAB:

MINITAB is used to create a normal probability plot of residuals.

03

Part(a) Step 3: MINITAB procedure

Procedure with Minitab:

To begin, select Start > Regression > Regression.

Step 2: In the Response field, type VOLUME.

Step 3: Select Column DIAMETER in Predictors.

Step 4: Select Normal probability plot of residuals from the Graphs menu.

Step 5: Click the OK button.

OUTPUT FROM MINITAB:

The following is the assumption for regression inferences:

Line of population regression:

For each value of the predictor variable X, the conditional mean of the response variable (Y)isβ0+β1X.

Standard deviation equal:

The response variable's (Y)standard deviation is the same as the explanatory variable's (X)standard deviation.

The standard deviation is represented by the symbol σ.

Populations that are typical:

The response variable follows a normal distribution.

Independent Observations: The responses variable observations are unrelated to one another.

Examine whether the regression t-test is appropriate to use.

  • It is obvious from the residual plot that the residuals follow a curved concave rising pattern.
  • It is clear from the normal probability plot of residuals and the residual plot that there are outliers in the data. As a result, the residual plot has greater fluctuation than the standard probability map for residuals.

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Most popular questions from this chapter

14.22 Tax Efficiency. Tax efficiency is a measure ranging from 0 to 100 - of how much tax due to capital gains stock or mutual funds investors pay on their investments each year, the higher the tax efficiency, the lower the tax. The paper "At the Mercy of the Manager" (Financial Planning, Vol. 30(5), pp. 54-56 ) by C. Israelsen examined the relationship between investments in mutual fund portfolios and their associated tax efficiencies. The following table shows the percentage of investments in energy securities (x)and tax efficiency (y)for 10 mutual fund portfolios.

In this Exercise 14.54, we repeat the information from Exercise 14.18.

a. Decide, at the 10%significance level, whether the data provide sufficient evidence to conclude that xis useful for predicting y:

b. Find a 90%confidence interval for the slope of the population regression line.

role="math" localid="1652363608630" x1344y8031 y^=9-2x

To find and interpret a confidence interval , at the specified confidence level90% for the slope of the population regression line that relates the response variables to the predictor variable.

Find a 95%prediction interval for the value of the response variable corresponding to the specified value of the predictor variable.

In Exercises 14.48-14.57, we repeat the information from Exercises 14.12-14.21.

a. Decide, at the 10%significance level, whether the data provide sufficient evidence lo conclude that a is useful for predicting y:

b. Find a 90%confidences interval for the slope of the population regression line.

y=1.75+0.25x

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