Suppose you estimate the following regression equation (y-ha…
Suppose you estimate the following regression equation (y-hat line) relating the “tastiness score” of chocolate candies to the number of calories in a serving, whether the candy contains nuts, and whether the candy is from a U.S. candy maker: TASTE = 30 + 0.25CALORIE + 5NUT – 3U.S. [TASTE = overall taste rating, 0-to-100, CALORIE = number of calories per serving, NUT is a dummy variable equal to 1 if the candy contains nuts (0 otherwise), and U.S. is a dummy variable equal to 1 if the candy is from an American candy maker (0 otherwise).] Question: Interpret, precisely, the coefficient on NUT from the regression equation above.
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Read DetailsLaw enforcement officers want to know if the average driver…
Law enforcement officers want to know if the average driver is speeding (driving faster than the posted speed limit) on a local highway with a posted speed limit of 70 mph. To test this, they select a sample of 49 drivers and find a sample mean speed of 74 mph, with a standard deviation of 15 mph. At 95% confidence, perform a 7-step hypothesis test of law enforcement’s question. [Show all 7 steps, but do not worry about inserting Greek letters, using the equation editor, etc.]
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