What are the required conditions for error variable in multiple regression analysis? The Internal Revenue Service (IRS) is trying to estimate the monthly amount of unpaid taxes discovered by its auditing division. The IRS estimated this figure on the basis of field auditing labor hours and number of hours of its computers used. The table given below presents these data for the last ten months. i. Develop the estimating equation best describing these data. ii. Interpret the value of regression coefficients. iii. Estimate the actual unpaid tax for field if audit labour hours is 4200 and computer hours is 1600 hours.
[10]

What do you understand by 'Design of an Experiment'? Physicians depend the laboratory test results when managing the medical problems such as diabetes or epilepsy. In an uniformity test glucose tolerance, three different laboratories were sent $n_t=5$ identical blood samples from a person who had drunk 50 mg. of glucose dissolved in water. The laboratory results are listed below: Do data indicate a difference in the average readings for three laboratories? Use $\\alpha = 0.05$.[10]

Define Type I and Type II error in testing of hypothesis. A psychologist wishes to verify that a certain drug increases the reaction time to given stimulus. The following reaction times (in tenth of seconds) were recorded before and after injection of the drug for each of four subjects. Test at 5% level of significance to determine whether the drug significantly increases the reaction time.[10]