The assumptions of a regression model can be evaluated by plotting and analyzing the error terms.
Important assumptions in regression model analysis are
- There should be a linear and additive relationship between dependent (response) variable and independent (predictor) variable(s).
- There should be no correlation between the residual (error) terms. Absence of this phenomenon is known as auto correlation.
- The independent variables should not be correlated. Absence of this phenomenon is known as multi col-linearity.
- The error terms must have constant variance. This phenomenon is known as homoskedasticity. The presence of non-constant variance is referred to heteroskedasticity.
- The error terms must be normally distributed.
Hence we can conclude that the assumptions of a regression model can be evaluated by plotting and analyzing the error terms.
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Answer:
The slope is undefined and there is no y- intercept
Step-by-step explanation:
The line is equivelent to x=5
This is a vertical line so the slope is undefined and there is no y- intercept
At the end of the first full month the interest acquires is $ 1.30.
<u>Step-by-step explanation:</u>
Since we are looking for the interest for full month, we have to divide the APR by 12.
Because APR is the interest amount for the full year.
So 3.75 % = 3.75/100 = 0.0375
Now multiplying, we will get
415 × 0.0375/12 = $ 1.30
Complete Question
A set of magical wand prices are normally distributed with a mean of 50 dollars and a standard deviation of 4 dollars. A blackthorn wand has a price of 45.20. What proportion of wand prices are lower than the price of the blackthorn wand? You may round your answer to four decimal places
Answer:
0.1151
Step-by-step explanation:
We solve using z score formula
z = (x-μ)/σ, where
x is the raw score = $45.20
μ is the population mean = $50
σ is the population standard deviation = $4
We are solving for x < 45.20
Hence:
z = 45.20 - 50/4
z = -1.2
Probability value from Z-Table:
P(x<45.20) = 0.11507
Approximately to 4 decimal places = 0.1151
Therefore, the proportion of wand prices that are lower than the price of the blackthorn wand is 0.1151
