Exam 14: Introduction to Multiple

SCENARIO 14-15 -True or False: Referring to Scenario 14-15, you can conclude that mean teacher salary 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 5% level of significance using the confidence interval estimate for β1.

True or False: Multiple regression is the process of using several independent variables to predict a number of dependent variables.

SCENARIO 14-14 An automotive engineer would like to be able to predict automobile mileages.She believes that the two most important characteristics that affect mileage are horsepower and the number of cylinders (4 or 6)of a car.She believes that the appropriate model is Y = 40 - 0.05X1 + 20X2 - 0.1X1X2 where X1 = horsepower X2 = 1 if 4 cylinders, 0 if 6 cylinders Y = mileage. -Referring to Scenario 14-14, the fitted model for predicting mileages for 6-cylinder cars is ________.

SCENARIO 14-14 An automotive engineer would like to be able to predict automobile mileages.She believes that the two most important characteristics that affect mileage are horsepower and the number of cylinders (4 or 6)of a car.She believes that the appropriate model is Y = 40 - 0.05X1 + 20X2 - 0.1X1X2 where X1 = horsepower X2 = 1 if 4 cylinders, 0 if 6 cylinders Y = mileage. -Referring to Scenario 14-14, the fitted model for predicting mileages for 4-cylinder cars is ________.

SCENARIO 14-4 14-10 Introduction to Multiple Regression -Referring to Scenario 14-4, at the 0.01 level of significance, what conclusion should the builder Reach regarding the inclusion of Income in the regression model?

SCENARIO 14-3 -Referring to Scenario 14-3, to test for the significance of the coefficient on gross domestic Product, the p-value is

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 1% level of significance based solely on but not actually computing the 99% the confidence interval estimate for β2 .

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 0.0005 seconds lower than that of a non-sedan with the same engine size.

SCENARIO 14-14 An automotive engineer would like to be able to predict automobile mileages.She believes that the two most important characteristics that affect mileage are horsepower and the number of cylinders (4 or 6)of a car.She believes that the appropriate model is Y = 40 - 0.05X1 + 20X2 - 0.1X1X2 where X1 = horsepower X2 = 1 if 4 cylinders, 0 if 6 cylinders Y = mileage. -Referring to Scenario 14-14, the predicted mileage for a 300 horsepower, 6-cylinder car is ________.

SCENARIO 14-3 -Referring to Scenario 14-3, one economy in the sample had an aggregate consumption level of $4 Billion, a GDP of $6 billion, and an aggregate price level of 200.What is the residual for this data Point?

SCENARIO 14-3 -Referring to Scenario 14-3, to test whether gross domestic product has a positive impact on Consumption, the p-value is

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 are the predicted sales (in millions of dollars)for a company Spending $500 million on capital and $200 million on wages?

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, one company in the sample had sales of $20 billion (Sales = 20,000). This company spent $300 million on capital and $700 million on wages.What is the residual (in Millions of dollars)for this data point?

SCENARIO 14-2 -Referring to Scenario 14-2, for these data, what is the estimated coefficient for performance Rating, b1?

True or False: The coefficient of multiple determination r2Y.12 measures the proportion of variation in Y that is explained by X1 and X2.

True or False: When an additional explanatory variable is introduced into a multiple regression model, the adjusted r2 can never decrease.

SCENARIO 14-3 -Referring to Scenario 14-3, what is the predicted consumption level for an economy with GDP Equal to $4 billion and an aggregate price index of 150?

SCENARIO 14-2 -Referring to Scenario 14-2, an employee who took 12 economics courses scores 10 on the Performance rating.What is her estimated expected wage rate?

SCENARIO 14-3 -Referring to Scenario 14-3, to test for the significance of the coefficient on aggregate price index, The p-value is

SCENARIO 14-2 -Referring to Scenario 14-2, for these data, what is the estimated coefficient for the number of Economics courses taken, b2?