THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A real estate broker is interested in identifying the factors that determine the price of a house.She wants to run the following regression: Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + ε where Y = price of the house in $1,000s,XS1U1B11S1U1B0 = number of bedrooms,XS1U1B12S1U1B0S1U1B1 S1U1B0= square footage of living space,and XS1U1B13S1U1B0S1U1B1 S1U1B0= number of miles from the beach.Taking a sample of 30 houses,the broker runs a multiple regression and gets the following results: = 123.2 + 4.59xS1U1B11S1U1B0 + 0.125xS1U1B12S1U1B0 - 6.04xS1U1B13S1U1B0, = 103.2, = 2.13, = 0.062, = 4.17,RS1U1P12S1S1P0 = 0.47,and = 0.45 (adjusted). -What should the null and alternative hypotheses be for β2?

A) H0 : β2 = 0, H1 : β2 > 0 B) H0 : β2 ≠ 0, H1 : β2 = 0 C) H0 : β2 > 0, H1 : β2 0 : β2 = 0, H1 : β2 ≠ 0 A) H0 : β2 = 0, H1 : β2 > 0 B) H0 : β2 ≠ 0, H1 : β2 = 0 C) H0 : β2 > 0, H1 : β2 0 : β2 = 0, H1 : β2 ≠ 0 A

How would you interpret the coefficient on x3?

A) We would expect to pay approximately $1,000 more for a house that is located 6 miles away from the beach. B) We would expect to pay approximately $6,040 more for a house that is located an additional mile away from the beach. C) We would expect to pay,on average,$1,000 less for a house that is located 6 miles away from the beach,given that the number of bedrooms and square footage of living space are held constant. D) We would expect to pay,on average,$6,040 less for a house that is located an additional mile away from the beach,given that the number of bedrooms and square footage of living space are held constant. A) We would expect to pay approximately $1,000 more for a house that is located 6 miles away from the beach. B) We would expect to pay approximately $6,040 more for a house that is located an additional mile away from the beach. C) We would expect to pay,on average,$1,000 less for a house that is located 6 miles away from the beach,given that the number of bedrooms and square footage of living space are held constant. D) We would expect to pay,on average,$6,040 less for a house that is located an additional mile away from the beach,given that the number of bedrooms and square footage of living space are held constant.

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.She used Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + βS1U1B14S1U1B0 S1U1B1 S1U1B0 + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars),XS1U1B11S1U1B0S1U1B1 S1U1B0is the number of loans,XS1U1B12S1U1B0 is the interest rate,and XS1U1B13S1U1B0 is the dollar value of expenditures of the bank on advertising (in thousands of dollars).Suppose that by using data from the past 24 months,she obtained = 3.8 + 0.23xS1U1B11S1U1B0 - 1.31xS1U1B12S1U1B0 + 0.032xS1U1B13S1U1B0 - 0.0005 . -What do these results suggest about the relationship between the total loan amount and advertising?

A) As the amount of advertising increases,the total loan amount decreases at a decreasing rate. B) As the amount of advertising increases,the total loan amount at first decreases,then increases. C) As the amount of advertising increases,the total loan amount increases at an increasing rate. D) As the amount of advertising increases,the total loan amount at first increases,then decreases. A) As the amount of advertising increases,the total loan amount decreases at a decreasing rate. B) As the amount of advertising increases,the total loan amount at first decreases,then increases. C) As the amount of advertising increases,the total loan amount increases at an increasing rate. D) As the amount of advertising increases,the total loan amount at first increases,then decreases.

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Suppose you are interested in determining the factors that influence the time required to prepare a tax return,and developed the model: Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + βS1U1B14S1U1B0XS1U1B14S1U1B0 + ε,where Y is the amount of time (in minutes),XS1U1B11S1U1B0 is the income of the individual (in thousands of dollars),XS1U1B12S1U1B0 is the age of the individual,XS1U1B13S1U1B0 is the number of people living in the household,and XS1U1B14S1U1B0 is a dummy variable that takes the value 1,if the individual owns his or her own home.After interviewing 40 accountants,you get the following results: = 17.2 + 3.8xS1U1B11S1U1B0 - 1.04xS1U1B12S1U1B0 + 2.15xS1U1B13S1U1B0 + 15.1xS1U1B14S1U1B0, = 5.3, = 0.13, = 0.33, = 1.51, = 4.7,SSR = 164.2,SSE = 200.7,and RS1U1P12S1S1P0 = 0.45. -Test H0 : β3 = 0 against H1 : β3 ≠ 0 and interpret your result.

t = @#IMG-DLM& (j = 1,2,... ,K) t = @#IMG-DLM& = 1.42 Sinc

How would you interpret the coefficient on x2?

A) The average square footage area of living space is 1,250 square feet. B) We would expect to pay approximately an additional $1,000 for each additional square foot of living space. C) We would expect to pay an additional $1,000 for each an additional 125 square foot of living space,given that the number of bedrooms and the number of miles from the beach are held constant. D) We would expect to pay,on average,an additional $125 for each additional square foot of living space,given that the number of bedrooms and the number of miles from the beach are held constant. A) The average square footage area of living space is 1,250 square feet. B) We would expect to pay approximately an additional $1,000 for each additional square foot of living space. C) We would expect to pay an additional $1,000 for each an additional 125 square foot of living space,given that the number of bedrooms and the number of miles from the beach are held constant. D) We would expect to pay,on average,an additional $125 for each additional square foot of living space,given that the number of bedrooms and the number of miles from the beach are held constant.