Regression, correlation, Year 2 hypothesis testing

Question 1

y=ax^n

Answer 1

logy = loga + nlogx

Question 2

y=kb^x

Answer 2

logy = logk + xlogb

Question 3

PMCC and values for correlation

Answer 3

x > |0.7| = strong correlation
|0.4| < x < |0.7| = weak correlation
x < |0.4|= no correlation

Question 4

set up for correlation hypothesis test
10% significance level
PMCC calculated is 0.45

Answer 4

sample size = 30
H0: rho = 0 H1: rho not equal to 0
5% significance per tail
from table: r= -0.3061
-0.45 < -0.3061 (test statistic < cv)
enough evidence to reject H0
there is evidence, at 10% significance, that there is a correlation between _____