The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education.

Savings = α + β₁Edu + β₂Inc + ε

 The variable ‘Edu’ takes a value of 1 if the person is educated, and 0 otherwise;  and the variable ‘Inc’ measures the income of the individual (in $).

​Refer to the model above. The benchmark/reference group in this model is _____.

Which of the following is true of dummy variables?

A manufacturer of cheese filled ravioli supplies a pizza restaurant chain. Based on data collected from its automatic filling process, the amount of cheese inserted into the ravioli is normally distributed.  To make sure that the automatic filling process is on target, quality control inspectors take a sample of 25 ravioli.  To get the correct value of t to construct a 98% confidence interval for the true mean amount of cheese filling, which of the following Excel syntax that the inspector should use?

The CEO of a company wants to estimate the proportion of employees that use company computers to go on Facebook during work hours with 95% confidence. He selects a random sample of 150 of the employees and finds that 53 of them logged onto Facebook that day. What is the point estimate of the proportion of the population that logged onto Facebook that day?

In a criminal trial, a Type II error is made when:

The owner of

local Jazz Club has recently surveyed a random sample of

Which of the following information is NOT relevant for calculating the required sample size for an interval estimate µ when the population standard deviation is known?

Dexter is a TV show about Dexter Morgan, a forensic expert who secretly lives a double life as a vigilante serial killer. He works in the Miami Metro Police Department, analyzing blood splatter patterns to solve crimes.

In one case, Dexter runs a forensic test to check if a suspect’s DNA is at a crime scene. He sets up the hypotheses:

• Null hypothesis (H0H_0​): The suspect’s DNA is not at the crime scene.
• Alternative hypothesis (H1H_a​): The suspect’s DNA is at the crime scene.

The test gives a p-value of 0.01, and Dexter is using a significance level (α\alpha) of 0.05.

What should Dexter conclude?

Using the accompany EXCEL output. According to the Excel output, the 95% confidence interval for the mean profit of NZ listed companies on the NZX is approximately:

In hypothesis testing, which of the following is referred to as a Type 1 error?