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|
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,
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.