Exam 18: A Roadmap for Analyzing Data

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, there is sufficient evidence that the number of weeks a worker is unemployed due to a layoff depends on at least one of the explanatory variables at a 10% level of significance.

SCENARIO 18-5 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: Regression Analysis -Referring to Scenario 18-5, to test the significance of the multiple regression model, the value of the test statistic is ______.

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 LawnSize makes a significant contribution to the model in the presence of the other independent variables at a 0.05 level of significance.

A contractor wants to forecast the number of contracts in future quarters, using quarterly data on number of contracts over the last 10 years.Which of the following would be the most appropriate analysis to perform?

SCENARIO 18-5 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: Regression Analysis -Referring to Scenario 18-5, the regression sum of squares that is missing in the ANOVA table should be ______.

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 an SUV is predicted to be 0.1252 seconds higher than that of a sedan.

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 100 insured drivers and recorded, X, the number of claims each made in the last 3 years.A Pareto chart can be used to present this information.

At a meeting of information systems officers for regional offices of a national company, a survey was taken to determine the number of employees the officers supervise in the operation of their departments, where X is the number of employees overseen by each information systems officer.A stem-and-leaf display can be used to present this information.

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, which of the following assumptions is most likely violated based on the residual plot of the residuals versus predicted Y?

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 value of the test statistic when testing whether daily mean of the percentage of students attending class has any effect on percentage of students passing the proficiency test, considering the effect of all the other independent variables?

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, predict the percentage of students passing the proficiency test for a school which has a daily mean of 95% of students attending class, a mean teacher salary of 40,000 dollars, and an instructional spending per pupil of 2,000 dollars.

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, there is sufficient evidence that the percentage of students passing the proficiency test depends on all of the explanatory variables at a 5% level of significance.

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 the model is not a good-fitting model at a 0.05 level of significance.

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 estimated odds ratio for a school with a mean SAT score of 1100, a TOEFL criterion that is not at least 550, and the room and board expense of 7 thousand dollars?

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 value of the test statistic when testing whether instructional spending per pupil has any effect on percentage of students passing the proficiency test, considering the effect of all the other independent variables?

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, which of the following is the correct alternative hypothesis to determine whether there is a significant relationship between percentage of students passing the proficiency test and the entire set of explanatory variables?

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, the null hypothesis implies that percentage of students passing the proficiency test is not related to one of the explanatory variables.

The probability that a particular brand of smoke alarm will function properly and sound an alarm in the presence of smoke is 0.8.You have 5 such alarms in your home and they operate independently.Which of the following distributions would you use to determine the probability that all of them will function properly in case of a fire?

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, what is the p-value of the test statistic when testing whether LawnSize makes a significant contribution to the model in the presence of the other independent variables?

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, which of the following is the correct alternative hypothesis to test 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?