1. a) Heteroskedasticity is a statistical term that refers to differing variance that is if the sequence of random variables has different variances.
incidental correlation or Multicollinearity is a situation where by variables argon so highly correlated with each other that it is effortful to come up with reliable estimates of their individual regression coefficients.
This devil render the inferences of multiple regression equation unreliable because they consume p-values misleading and the regression coefficients; confidence intervals become very considerable and may vary dramatically with addition or riddance of just one. They inflate the variables of parameter estimates that lead to lack of statistical significance.
They are detected by examining tolerance which is a measure of collinearly and variance inflation factor (VIF) which measures impact of collinearly. Regression analysis in such situation can be turn by increasing sample size of your study and by centering variables.
2. a) Expected demand = (8000x0.15) + (9000x0.30) + (12000x0.30) + (14000x0.15)
+ (16000x0.10)
= 11200 units
E (profit) = 11200(250-180) 700000
= Sh.
84000
Standard excursus = Square root of variance
= 2131 units
P (profit = 50000)
z = Profit E (profit) / standard deviation; z is the standard normal diffusion
z = (50000 84000)/ 2131x70
= -0.23
Using the z table, P (profit = 50000) = 0.5 0.0910
= 0.42...If you want to become a full essay, order it on our website: Ordercustompaper.com
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