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1. (a) State whethereach of these statements is true or false, giving brief reas

ID: 3089235 • Letter: 1

Question

1. (a) State whethereach of these statements is true or false, giving brief reasons whythis is

so (Note that no markswill be awarded for a simple true/false reply).

i. When using a largerandom sample, the distribution of the sample mean maybe

regarded as normal dueto the central limit theorem.

ii. The least squaresregression line minimizes the sum of absolutedeviations.

iii. The power of atest is the probability of a type I error.

iv. If two variables areuncorrelated then they must have a nonlinearrelationship

Explanation / Answer

ii. True - the least squares regression line is an algebraicminimization of deviations from the data iii. False - The power of the test is 1 - P(type II error) andis not equal to type I error. The four possibilities of a H-testare type 1 error, rejecting it, accepting it, or type IIerror iv. True - correlation refers to the linearity of arelationship