Exam 14: Introduction to Multiple

SCENARIO 14-13 An econometrician is interested in evaluating the relationship of demand for building materials to mortgage rates in Los Angeles and San Francisco.He believes that the appropriate model is Y = 10 + 5X1 + 8X2 where X1 = mortgage rate in % X2 = 1 if SF, 0 if LA Y = demand in $100 per capita -Referring to Scenario 14-13, the effect of living in San Francisco rather than Los Angeles is to increase the mean demand by an estimated ________.

SCENARIO 14-15 -True or False: Referring to Scenario 14-15, you can conclude definitively that mean teacher salary individually has no impact on the mean percentage of students passing the proficiency test, taking into account the effect of instructional spending per pupil, at a 1% level of significance based solely on but not actually computing the 99% confidence interval estimate for β1.

SCENARIO 14-3 -Referring to Scenario 14-3, one economy in the sample had an aggregate consumption level of $3 Billion, a GDP of $3.5 billion, and an aggregate price level of 125.What is the residual for this Data point?

SCENARIO 14-4 14-10 Introduction to Multiple Regression -Referring to Scenario 14-4, which of the following values for the level of significance is the Smallest for which at least one explanatory variable is significant individually?

SCENARIO 14-16 14-64 Introduction to Multiple Regression Introduction to Multiple Regression 14-65 -True or False: Referring to Scenario 14-16, the 0 to 60 miles per hour acceleration time of a sedan is predicted to be 0.7264 seconds higher than that of a non-sedan with the same engine size.

SCENARIO 14-5 A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies.She proceeds to randomly select 26 large corporations and record information in millions of dollars.The Microsoft Excel output below shows results of this multiple regression. Introduction to Multiple Regression 14-17 -Referring to Scenario 14-5, what is the p-value for testing whether Capital has a negative Influence on corporate sales?

True or False: When an explanatory variable is dropped from a multiple regression model, the coefficient of multiple determination can increase.

True or False: You have just computed a regression model in which the value of coefficient of multiple determination is 0.57.To determine if this indicates that the independent variables explain a significant portion of the variation in the dependent variable, you would perform an F- test.

SCENARIO 14-5 A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies.She proceeds to randomly select 26 large corporations and record information in millions of dollars.The Microsoft Excel output below shows results of this multiple regression. Introduction to Multiple Regression 14-17 -Referring to Scenario 14-5, which of the following values for α is the smallest for which the Regression model as a whole is significant?

SCENARIO 14-5 A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies.She proceeds to randomly select 26 large corporations and record information in millions of dollars.The Microsoft Excel output below shows results of this multiple regression. Introduction to Multiple Regression 14-17 -Referring to Scenario 14-5, what is the p-value for testing whether Capital has a positive Influence on corporate sales?

SCENARIO 14-1 -Referring to Scenario 14-1, if an employee who had been with the company 5 years scored a 9 on The aptitude test, what would his estimated expected sales be?

SCENARIO 14-15 -Referring to Scenario 14-15, the null hypothesis H01:0β ==β2 implies that percentage of students passing the proficiency test is not affected by one of the explanatory variables.

SCENARIO 14-4 14-10 Introduction to Multiple Regression -Referring to Scenario 14-4, which of the following values for the level of significance is the Smallest for which the regression model as a whole is significant?

SCENARIO 14-16 14-64 Introduction to Multiple Regression Introduction to Multiple Regression 14-65 -Referring to Scenario 14-16, what is the value of the test statistic to determine whether engine size makes a significant contribution to the regression model in the presence of the other independent variable at a 5% level of significance?

True or False: The total sum of squares (SST)in a regression model will never be greater than the regression sum of squares (SSR).

SCENARIO 14-15 -Referring to Scenario 14-15, the null hypothesis H01:0β ==β2 implies that percentage of students passing the proficiency test is not related to either of the explanatory variables.

SCENARIO 14-16 14-64 Introduction to Multiple Regression Introduction to Multiple Regression 14-65 -True or False: Referring to Scenario 14-16, the 0 to 60 miles per hour acceleration time of a sedan is predicted to be 0.7264 seconds lower than that of a non-sedan with the same engine size.

True or False: The slopes in a multiple regression model are called net regression coefficients.

SCENARIO 14-15 -True or False: Referring to Scenario 14-15, you can conclude definitively that instructional spending per pupil individually has no impact on the mean percentage of students passing the proficiency test, taking into account the effect of mean teacher salary, at a 10% level of significance based solely on but not actually computing the 90% confidence interval estimate for β2 .