1. A polling organization collected data on a sample of 60 registered voters regarding a tax on the market value of equity transactions as one remedy for the budget deficit.
Opinion about Market Tax | Education | ||
High School | College Grad. | MBA | |
Favorable | 15 | 5 | 0 |
Undecided | 10 | 8 | 2 |
Unfavorable | 0 | 2 | 18 |
a. Compute gamma for the table.
b. Compute tau b or tau c for the same data.
c. What accounts for the differences?
d. Decide which is more suitable for these data.
2. For the following data,
X | Y |
25 | 5 |
19 | 7 |
17 | 12 |
14 | 23 |
12 | 20 |
9 | 25 |
8 | 26 |
7 | 28 |
3 | 20 |
a. Calculate the correlation between X and Y.
b. Interpret the sign of the correlation.
c. Interpret the square of the correlation.
d. Plot the least-squares line.
e. Test for a linear relationship:
(1) Beta1 = 0.
(2) r = 0.
3) An F test.