Exam 17: A Roadmap for Analyzing Data

TABLE 17-5 You worked as an intern at We Always Win Car Insurance Company last summer.You notice that individual car insurance premiums depend very much on the age of the individual,the number of traffic tickets received by the individual,and the population density of the city in which the individual lives.You performed a regression analysis in EXCEL and obtained the following information: -Referring to Table 17-5,the regression sum of squares that is missing in the ANOVA table should be ________.

TABLE 17-9 What are the factors that determine the acceleration time (in sec.)from 0 to 60 miles per hour of a car? Data on the following variables for 171 different vehicle models were collected: Accel Time: Acceleration time in sec. Cargo Vol: Cargo volume in cu.ft. HP: Horsepower MPG: Miles per gallon SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0 Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0 The regression results using acceleration time as the dependent variable and the remaining variables as the independent variables are presented below. The various residual plots are as shown below. The coefficient of partial determination ( )of each of the 5 predictors are,respectively,0.0380,0.4376,0.0248,0.0188,and 0.0312. The coefficient of multiple determination for the regression model using each of the 5 variables X_j as the dependent variable and all other X variables as independent variables ( )are,respectively,0.7461,0.5676,0.6764,0.8582,0.6632. -Referring to Table 17-9,what is the correct interpretation for the estimated coefficient for Sedan?

TABLE 17-11 A logistic regression model was estimated in order to predict the probability that a randomly chosen university or college would be a private university using information on mean total Scholastic Aptitude Test score (SAT)at the university or college,the room and board expense measured in thousands of dollars (Room/Brd),and whether the TOEFL criterion is at least 550 (Toefl550 = 1 if yes,0 otherwise.)The dependent variable,Y,is school type (Type = 1 if private and 0 otherwise). -Referring to Table 17-11,what should be the decision ('reject' or 'do not reject')on the null hypothesis when testing whether SAT makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance?

TABLE 17-5 You worked as an intern at We Always Win Car Insurance Company last summer.You notice that individual car insurance premiums depend very much on the age of the individual,the number of traffic tickets received by the individual,and the population density of the city in which the individual lives.You performed a regression analysis in EXCEL and obtained the following information: -Referring to Table 17-5,the 99% confidence interval for the change in mean insurance premiums of a person who has become 1 year older (i.e.,the slope coefficient for AGE)is -0.82 ± ________.

Four surgical procedures currently are used to install pacemakers.If the patient does not need to return for follow-up surgery,the operation is called a "clear" operation.A heart center wants to compare the 4 procedures,and collects the following numbers of patients from their own records: Which of the following tests will be the most appropriate to find out which of the 4 procedures is the most effective?

TABLE 17-12 The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate home owners who do and do not have a lawn service.A random sample of 30 home owners located in a suburban area near a large city was selected; 15 did not have a lawn service (code 0)and 15 had a lawn service (code 1).Additional information available concerning these 30 home owners includes family income (Income,in thousands of dollars),lawn size (Lawn Size,in thousands of square feet),attitude toward outdoor recreational activities (Attitude 0 = unfavorable,1 = favorable),number of teenagers in the household (Teenager),and age of the head of the household (Age). The Minitab output is given below: -Referring to Table 17-12,what is the p-value of the test statistic when testing whether Age makes a significant contribution to the model in the presence of the other independent variables?

TABLE 17-9 What are the factors that determine the acceleration time (in sec.)from 0 to 60 miles per hour of a car? Data on the following variables for 171 different vehicle models were collected: Accel Time: Acceleration time in sec. Cargo Vol: Cargo volume in cu.ft. HP: Horsepower MPG: Miles per gallon SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0 Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0 The regression results using acceleration time as the dependent variable and the remaining variables as the independent variables are presented below. The various residual plots are as shown below. The coefficient of partial determination ( )of each of the 5 predictors are,respectively,0.0380,0.4376,0.0248,0.0188,and 0.0312. The coefficient of multiple determination for the regression model using each of the 5 variables X_j as the dependent variable and all other X variables as independent variables ( )are,respectively,0.7461,0.5676,0.6764,0.8582,0.6632. -Referring to Table 17-9,what is the correct interpretation for the estimated coefficient for HP?

TABLE 17-3 A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age (X₁ = Age),experience in the field (X₂ = Exper),number of degrees (X₃ = Degrees),and number of previous jobs in the field (X₄ = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output: SUMMARY OUTPUT Regression Statistics ANOVA -True or False: Referring to Table 17-3,the F test for the significance of the entire regression performed at a level of significance of 0.01 leads to a rejection of the null hypothesis.

TABLE 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test.She obtained the data on percentage of students passing the proficiency test (% Passing),daily mean of the percentage of students attending class (% Attendance),mean teacher salary in dollars (Salaries),and instructional spending per pupil in dollars (Spending)of 47 schools in the state. Following is the multiple regression output with Y = % Passing as the dependent variable,X₁ = % Attendance,X₂ = Salaries and X₃ = Spending: -Referring to Table 17-8,which of the following is a correct statement?

TABLE 17-10 Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy)and the independent variables are the age of the worker (Age),the number of years of education received (Edu),the number of years at the previous job (Job Yr),a dummy variable for marital status (Married: 1 = married,0 = otherwise),a dummy variable for head of household (Head: 1 = yes,0 = no)and a dummy variable for management position (Manager: 1 = yes,0 = no).We shall call this Model 1.The coefficient of partial determination ( )of each of the 6 predictors are,respectively,0.2807,0.0386,0.0317,0.0141,0.0958,and 0.1201. Model 2 is the regression analysis where the dependent variable is Unemploy and the independent variables are Age and Manager.The results of the regression analysis are given below: -True or False: Referring to Table 17-10 and using both Model 1 and Model 2,there is insufficient evidence to conclude that the independent variables that are not significant individually are significant as a group in explaining the variation in the dependent variable at a 5% level of significance.

TABLE 17-12 The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate home owners who do and do not have a lawn service.A random sample of 30 home owners located in a suburban area near a large city was selected; 15 did not have a lawn service (code 0)and 15 had a lawn service (code 1).Additional information available concerning these 30 home owners includes family income (Income,in thousands of dollars),lawn size (Lawn Size,in thousands of square feet),attitude toward outdoor recreational activities (Attitude 0 = unfavorable,1 = favorable),number of teenagers in the household (Teenager),and age of the head of the household (Age). The Minitab output is given below: -Referring to Table 17-12,what should be the decision ('reject' or 'do not reject')on the null hypothesis when testing whether Age makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance?

TABLE 17-10 Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy)and the independent variables are the age of the worker (Age),the number of years of education received (Edu),the number of years at the previous job (Job Yr),a dummy variable for marital status (Married: 1 = married,0 = otherwise),a dummy variable for head of household (Head: 1 = yes,0 = no)and a dummy variable for management position (Manager: 1 = yes,0 = no).We shall call this Model 1.The coefficient of partial determination ( )of each of the 6 predictors are,respectively,0.2807,0.0386,0.0317,0.0141,0.0958,and 0.1201. Model 2 is the regression analysis where the dependent variable is Unemploy and the independent variables are Age and Manager.The results of the regression analysis are given below: -Referring to Table 17-10,Model 1,what is the value of the test statistic when testing whether being married or not makes a difference in the mean number of weeks a worker is unemployed due to a layoff while holding constant the effect of all the other independent variables?

TABLE 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test.She obtained the data on percentage of students passing the proficiency test (% Passing),daily mean of the percentage of students attending class (% Attendance),mean teacher salary in dollars (Salaries),and instructional spending per pupil in dollars (Spending)of 47 schools in the state. Following is the multiple regression output with Y = % Passing as the dependent variable,X₁ = % Attendance,X₂ = Salaries and X₃ = Spending: -True or False: Referring to Table 17-8,the null hypothesis H₀ : β₁ = β₂ = β₃ = 0 implies that the percentage of students passing the proficiency test is not affected by any of the explanatory variables.

TABLE 17-1 A real estate builder wishes to determine how house size (House)is influenced by family income (Income),family size (Size),and education of the head of household (School).House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is in years.The builder randomly selected 50 families and ran the multiple regression.Microsoft Excel output is provided below: -Referring to Table 17-1,what fraction of the variability in house size is explained by income,size of family,and education?

TABLE 17-2 One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y).To provide its customers with information on that matter,a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X₁),the amount of insulation in inches (X₂),the number of windows in the house (X₃),and the age of the furnace in years (X₄).Given below are the EXCEL outputs of two regression models. -Referring to Table 17-2,what is the value of the partial F test statistic for H₀ : β₃ = β₄ = 0 vs.H₁ : At least one β_j ≠ 0,j = 3,4?

TABLE 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test.She obtained the data on percentage of students passing the proficiency test (% Passing),daily mean of the percentage of students attending class (% Attendance),mean teacher salary in dollars (Salaries),and instructional spending per pupil in dollars (Spending)of 47 schools in the state. Following is the multiple regression output with Y = % Passing as the dependent variable,X₁ = % Attendance,X₂ = Salaries and X₃ = Spending: -True or False: Referring to Table 17-8,there is sufficient evidence that instructional spending per pupil has an effect on the percentage of students passing the proficiency test while holding constant the effect of all the other independent variables at a 5% level of significance.

TABLE 17-6 A weight-loss clinic wants to use regression analysis to build a model for weight loss of a client (measured in pounds).Two variables thought to affect weight loss are client's length of time on the weight-loss program and time of session.These variables are described below: Y = Weight loss (in pounds) X₁ = Length of time in weight-loss program (in months) X₂ = 1 if morning session,0 if not X₃ = 1 if afternoon session,0 if not (Base level = evening session) Data for 12 clients on a weight-loss program at the clinic were collected and used to fit the interaction model: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₁X₂ + β₅X₁X₃ + ε Partial output from Microsoft Excel follows: Regression Statistics ANOVA F = 5.41118 Significance F = 0.040201 -Referring to Table 17-6,in terms of the βs in the model,give the mean change in weight loss (Y)for every 1-month increase in time in the program (X₁)when attending the afternoon session.

TABLE 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test.She obtained the data on percentage of students passing the proficiency test (% Passing),daily mean of the percentage of students attending class (% Attendance),mean teacher salary in dollars (Salaries),and instructional spending per pupil in dollars (Spending)of 47 schools in the state. Following is the multiple regression output with Y = % Passing as the dependent variable,X₁ = % Attendance,X₂ = Salaries and X₃ = Spending: -Referring to Table 17-8,what are the lower and upper limits of the 95% confidence interval estimate for the effect of a one dollar increase in instructional spending per pupil on the mean percentage of students passing the proficiency test?

TABLE 17-10 Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy)and the independent variables are the age of the worker (Age),the number of years of education received (Edu),the number of years at the previous job (Job Yr),a dummy variable for marital status (Married: 1 = married,0 = otherwise),a dummy variable for head of household (Head: 1 = yes,0 = no)and a dummy variable for management position (Manager: 1 = yes,0 = no).We shall call this Model 1.The coefficient of partial determination ( )of each of the 6 predictors are,respectively,0.2807,0.0386,0.0317,0.0141,0.0958,and 0.1201. Model 2 is the regression analysis where the dependent variable is Unemploy and the independent variables are Age and Manager.The results of the regression analysis are given below: -Referring to Table 17-10,Model 1,which of the following is a correct statement?

TABLE 17-10 Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy)and the independent variables are the age of the worker (Age),the number of years of education received (Edu),the number of years at the previous job (Job Yr),a dummy variable for marital status (Married: 1 = married,0 = otherwise),a dummy variable for head of household (Head: 1 = yes,0 = no)and a dummy variable for management position (Manager: 1 = yes,0 = no).We shall call this Model 1.The coefficient of partial determination ( )of each of the 6 predictors are,respectively,0.2807,0.0386,0.0317,0.0141,0.0958,and 0.1201. Model 2 is the regression analysis where the dependent variable is Unemploy and the independent variables are Age and Manager.The results of the regression analysis are given below: -Referring to Table 17-10,Model 1,which of the six independent variables (Age,Edu,Job Yr,Married,Head and Manager)is (are)insignificant in affecting the dependent variable using a 5% level of significance after taking into account the effect of the remaining independent variables?