Exam 18: A Roadmap for Analyzing Data

SCENARIO 18-9 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. SCENARIO 18-9 cont. The various residual plots are as shown below. SCENARIO 18-9 cont. SCENARIO 18-9 cont. 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 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 Scenario 18-9, ________ of the variation in Accel Time can be explained by the five independent variables.

A wheel spinning game is played with a special wheel with 24 equal segments that determine the dollar values of a single spin.Which of the following distributions can best be used to compute the probability of winning a specific dollar value in a single spin?

A physician and president of a Tampa Health Maintenance Organization (HMO)are attempting to show the benefits of managed health care to an insurance company.The physician believes that certain types of doctors are more cost-effective than others.To investigate this, the president obtained independent random samples of 20 HMO physicians from each of 4 primary specialties - General Practice (GP), Internal Medicine (IM), Pediatrics (PED), and Family Physicians (FP)- and recorded the total charges per member per month for each.A second variable which the president believes influences total charges per member per month is whether the doctor is a foreign or USA medical school graduate. To investigate this, the president also collected data on 20 foreign medical school graduates in each of the 4 primary specialty types described above.So, information on charges for 40 doctors (20 foreign and 20 USA medical school graduates)was obtained for each of the 4 specialties.The president has already found out that specialty types and origin of the medical degree do not interact to affect the charges.Which of the following tests will be the most appropriate to find out if the primary specialty affects the charges?

SCENARIO 18-11 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). The Minitab output is given below: -Referring to Scenario 18-11, what is the p-value of the test statistic when testing whether Toefl500 makes a significant contribution to the model in the presence of the other independent variables?

SCENARIO 18-12 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 Scenario 18-12, which of the following is the correct interpretation for the Attitude slope coefficient?

A powerful women's group has claimed that men and women differ in attitudes about sexual discrimination.A group of 50 men (group 1)and 40 women (group 2)were asked if they thought sexual discrimination is a problem in the United States.Of those sampled, 11 of the men and 19 of the women did believe that sexual discrimination is a problem. Which of the following tests will you use to find out if there is any difference in attitudes about sexual discrimination?

SCENARIO 18-8 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 as the dependent variable, -Referring to Scenario 18-8, what is the standard error of estimate?

SCENARIO 18-8 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 as the dependent variable, -Referring to Scenario 18-8, what is the p-value of the test statistic to determine whether there is a significant relationship between percentage of students passing the proficiency test and the entire set of explanatory variables?

An insurance company evaluates many variables about a person before deciding on an appropriate rate for automobile insurance.A representative from a local insurance agency selected a random sample of 15 insured drivers and recorded the number of claims each made in the last 3 years.Based on this information, which of the following will you construct to learn about the mean number of claims made by the company's customer?

SCENARIO 18-1 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: SUMMARY OUTPUT -Referring to Scenario 18-1, suppose the builder wants to test whether the coefficient on Income is significantly different from 0.What is the value of the relevant t-statistic?

SCENARIO 18-12 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 Scenario 18-12, there is not enough evidence to conclude that Age makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance.

SCENARIO 18-9 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. SCENARIO 18-9 cont. The various residual plots are as shown below. SCENARIO 18-9 cont. SCENARIO 18-9 cont. 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 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 Scenario 18-9, the 0 to 60 miles per hour acceleration time of a sedan is predicted to be 0.7679 seconds higher than that of an SUV.

Data on the amount of money made in a year by 1000 families in a small town were collected.You want to know how much each family will get if the money made by all the 1000 families is pooled together and then evenly redistributed back to them.Which of the following would you compute?

A researcher randomly sampled 30 graduates, 18 males and 12 females, of an MBA program and recorded data concerning their starting salaries.Of primary interest to the researcher was the effect of gender on starting salaries.Statistics of the mean salaries of the females and males in the sample were computed.The sample standard deviations suggest that the variability of starting salaries of the two groups is almost the same.Suppose the starting salaries from both groups can be considered as normally distributed.Which of the following tests will be the most appropriate?

SCENARIO 18-1 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: SUMMARY OUTPUT -Referring to Scenario 18-1, suppose the builder wants to test whether the coefficient on School is significantly different from 0.What is the value of the relevant t-statistic?

SCENARIO 18-10 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 Scenario 18-10 and using both Model 1 and Model 2, what is the p-value of the test statistic for testing whether the independent variables that are not significant individually are also not significant as a group in explaining the variation in the dependent variable at a 5% level of significance?

SCENARIO 18-9 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. SCENARIO 18-9 cont. The various residual plots are as shown below. SCENARIO 18-9 cont. SCENARIO 18-9 cont. 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 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 Scenario 18-9, ________ of the variation in Accel Time can be explained by

To test the effectiveness of a business school preparation course, 8 students took a general business test before and after the course.Suppose the before and after exam scores are both normally distributed.Which of the following tests will be the most appropriate?

SCENARIO 18-10 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 Scenario 18-10 Model 1, we can conclude that, holding constant the effect of the other independent variables, there is a difference in the mean number of weeks a worker is unemployed due to a layoff between a worker who is married and one who is not at a 1% level of significance if all we have is the information of the 95% confidence interval estimate for

SCENARIO 18-3 A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age ( = Age), experience in the field ( = Exper), number of degrees ( = Degrees), and number of previous jobs in the field ( = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output: SUMMARY OUTPUT -Referring to Scenario 18-3, the estimate of the unit change in the mean of Y per unit change in considering the effects of the other 3 variables, is ________.