Question

envperan P(x- d Froblem 2. A researcher de scale as a deviation from tinine mean global temperatu a ve amounts of CO2 in parts parts 20h ning mean global temperature (measured on the ounts of CO2 in parts per million) in Dow Jones Industrial Average for the period the po mal the atmosphere, and the annu 1959.2016 (57 observations). The temperature s i ste identify the best predictor of the 57 observations)The re es below summarire the sample tistics and the correlation values between the var Global temp CO2 DJIA Mean 0.3174 35257 5246.5 St dey 0.2738 26.15 5516.9 Correlation Global temp 002 DJA Global temp CO2 0.947 DJIA 0.896 0.932 a) Which of the two variables (CO2 or DJIA) is the single best predictor of the price? Why? b) Calculate the coefficients (4dp) in the simple regression with the best predictor as the explanatory variable. c) Calculate for that regression and interpret it. d) The standard error for the slope of the regression is 0.00045. Test whether the regression slope is different from 0. HO: HA: Statistie: p-value = Conclusion:

Answer 1

Frem the given the single best it has langer Co2 Preeli ctor Belouse is a) E (Y= 0.g47) with Comelabion Global Terp. 0.947 X 0.2738 b1= 26.15 b, =0.00g 0. g47X0-947 = 0.8968 %3D =89.68%. ja vanab'an in Response variable in explained by the regression 89.68%. model. Sb,- 0.0004s Ho:: Bi=0 Test stabshic VIS HI:-B, 70 bi 0.00g9 131 0.00045 t= 22.034

d.f- n-2 = 55 p(It| > t) P- value- = 2x P(tss>22.034) =2X 0 -0000 O.0000 Let P- value <a, Rejeet 0 Hen ce we Co2 is signifi Cant the model. Conclude that Carerficcient in