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florinpop Wrote: ------------------------------------------------------- > i can’t remember the question with one or twon > tailed tests wanted to test if the correlation coefficient r is statistically significant. two tailed t test. 100%

Florinpop, I don’t remember any one tailed or two tailed either. I think they asked the test for correlation, which is t-test. After all, I don’t remember many things from the exam. So I may be wrong.

i put 1-tail test… it was such a easy point !!! damn

was .339 the biggest answer (choice D). I put that but I forgot the n-1.

th n-1 will cancel itself out…

i thought they asked the relationship between interest rate and inflation, therefore, it is international fisher

The equation was trying to figure out exchange rates and using inflation right? So that would be PPP

ConfusedbyCFA Wrote: ------------------------------------------------------- > The equation was trying to figure out exchange > rates and using inflation right? So that would be > PPP Yep

I believe I ended up with the highest figure int he list, 0.690 or something which was D.

Did n-1 even make a difference in thi s answer?

okay so is it 0.339 two tailed >or equal to 1 explains 26% variation wowww the other two i dun remember

since >= 1, it should be a 1 tail t.

LanceTX Wrote: ------------------------------------------------------- > Did n-1 even make a difference in thi s answer? no

ok feels great. thank god I went with 2 tail. It said “significantly diff. from zero” and that would mean “not equal to zero” and hence, 2 tail.

No… point estimates… IE does it = 0, is a two tail test… inequalities are one tailed.

Hello, Can someone tell me what the two-tail test question was about? I can’t seem to remember any of it - either I was too confident or too ignorant back then. :slight_smile:

Hello, Can someone tell me what the two-tail test question was about? I can’t seem to remember any of it - either I was too confident or too ignorant back then. :slight_smile:

Regarding the last question in the section asking for the answer to formula when the inflation differental was .5%, I put something like 4.8% because the second variable would have been zero since it was held constant (0 change)? Am I right?

4.9 = 0.84 +4.06

{“The equation was trying to figure out exchange rates and using inflation right? So that would be PPP” This is what everyone is saying, but I remember the question asking about the relationship between interest rates and inflation rates. Obviously I could be wrong, in which case it would be PPP.