Quant--which one am i missing

#1 was the proper test for correlation , 2 was null test for inflation, 3 was the parity relation explained, 4 was the effect on dependent for a given change in independent variable, 5 was about what we could conclude about the model (R2 was like 20+%). what was the sixth question here?

regression - figure out change in Y. 0.5 * 1.7 = 0.85.

you forgot to add the intercept

i’ve listed that one as #4. still missing one.

why add the intercept? that has nothing to do with the change

test greater or equal to one etc

Do you know what are independent variables? I think one is inflation rate . What is second independent variable? What relationship holds? Is it purchasing power parity? I think I saw fisher, relative purchasing parity.

Wasn’t the dependent variable the actual change in rates? Therefore if they ask for the change in rates given a %increase in the coefficient, you would have to add the intercept, no?

The one you are missing is when we had to calculate the correlation .339 …I think

Can we figure out what’s the missing question first?:slight_smile:

it was greater or equal to one, less than or equal to one, etc

sbugrad89 Wrote: ------------------------------------------------------- > The one you are missing is when we had to > calculate the correlation .339 …I think thats what you were missing

They gave us a table and we had to calculate the correlation… between x and Y …not ring a bell?

what’s the detail of the correlation one?

i’ve listed that as #2 above. Here’s what i’ve answered. #1 is a two tailed t-test; 2 was a null of >=1, 3 i think i picked ppp, 4 i picked 0.8, 5 i picked the R2 explains 20+%. But i can’t recall #6.



i can’t remember anything about the correlation question, can someone please remind some details? thanks.

Corr = COV(X,Y)/STDDEV(X)*STDDEV(Y) = 0.339 . you had to calc the correlation using the SUM of the cross product and the standard deviations of X and Y which were laid out in a table.

Isnt Cov [(X-Xaverage)(Y-Yaverage)]/n-2? If so then I got 0.083