Exam 13: Introduction to Multiple Regression

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Instruction 13.7 You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premium depends 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 Microsoft Excel and obtained the following information: Regression Analysis MultipleR 0.63 R Square 0.40 Adj. R Square 0.23 Standard Error 50.00 Observations 15.00 ANOVA df SS MS F Signif F Regression 3 5994.24 2.40 0.12 Residual 11 27496.82 Total 45479.54 Coeff StdError t Stat p-value Lower 99.0\% Upper 99.0\% Intercept 123.80 48.71 2.54 0.03 -27.47 275.07 AGE 0.82 0.87 -0.95 0.36 -3.51 1.87 TICKETS 11.25 10.66 1.99 0.07 -11.86 54.37 DENSITY -3.14 6.46 -0.49 0.64 -23.19 16.91 -Referring to Instruction 13.7,to test the significance of the multiple regression model,the p-value of the test statistic in the sample is___________.

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Instruction 13.22 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X1 = % Attendance, X2 = Salaries and X3 = Spending: Instruction 13.22 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X<sub>1</sub> = % Attendance, X<sub>2 </sub>= Salaries and X<sub>3 </sub>= Spending:    -Referring to Instruction 13.22,you can conclude that instructional spending per pupil has no impact on mean percentage of students passing the proficiency test at a 1% level of significance based solely on the 95% confidence interval estimate for β<sub>3</sub>. -Referring to Instruction 13.22,you can conclude that instructional spending per pupil has no impact on mean percentage of students passing the proficiency test at a 1% level of significance based solely on the 95% confidence interval estimate for β3.

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Instruction 13.25 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signiff Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signiff Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.25 Model 1,the alternative hypothesis H1H _ { 1 } : At least one of ?j ? 0 for j = 1,2,3,4,5,6 implies that the number of weeks a worker is unemployed due to a layoff is affected by all of the explanatory variables.

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Instruction 13.25 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signiff Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signiff Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.25 Model 1,the null hypothesis H0: ?1 = ?2 = ?3 = ?4 = ?5 = ?6 = 0 implies that the number of weeks a worker is unemployed due to a layoff is not related to one of the explanatory variables.

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Instruction 13.33 An econometrician is interested in evaluating the relation of demand for building materials to mortgage rates in Sydney and Melbourne. He believes that the appropriate model is Y=10+5+8 where = mortgage rate in \% =1 if Sydney, 0 if Melbourne Y = demand in \ 100 per capita -Referring to Instruction 13.33,the effect of living in Sydney rather than Melbourne is to increase the mean demand by an estimated ___________ per capita.

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Instruction 13.13 A financial analyst wanted to examine the relationship between salary (in $1,000) and four variables: age (X1 = Age), experience in the field (X2 = Exper), number of degrees (X3 = Degrees) and number of previous jobs in the field (X4 = Prevjobs). He took a sample of 20 employees and obtained the following Microsoft Excel output:  OUTPUT \text { OUTPUT } SUMMARY Regression Statistics Multiple R 0.992 R Square 0.984 Adj. R Square 0.979 Std. Error 2.26743 Observations 20 ANOVA df SS MS F Signif F Regression 4 4609.83164 1152.45791 224.160 0.0001 Residual 15 77.11836 5.14122 Total 19 4686.95000 Coeff Std Error t Stat p value Intercept -9.611198 2.77988638 -3.457 0.0035 Age 1.327695 0.11491930 11.553 0.0001 Exper -0.106705 0.14265559 -0.748 0.4660 Degrees 7.311332 0.80324187 9.102 0.0001 Prevjobs -0.504168 0.44771573 -1.126 0.2778 Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error -Referring to Instruction 13.13,the net regression coefficient of X2 is ___________.

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Instruction 13.42 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signif F Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signif F Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.42 Model 1,which of the following is a correct statement?

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Instruction 13.35 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X1 = % Attendance, X2 = Salaries and X3 = Spending: Instruction 13.35 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X<sub>1</sub> = % Attendance, X<sub>2 </sub>= Salaries and X<sub>3 </sub>= Spending:    -Referring to Instruction 13.35,what are the lower and upper limits of the 95% confidence interval estimate for the effect of a one dollar increase in instructional spending per pupil on the mean percentage of students passing the proficiency test? -Referring to Instruction 13.35,what are the lower and upper limits of the 95% confidence interval estimate for the effect of a one dollar increase in instructional spending per pupil on the mean percentage of students passing the proficiency test?

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Instruction 13.7 You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premium depends 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 Microsoft Excel and obtained the following information: Regression Analysis MultipleR 0.63 R Square 0.40 Adj. R Square 0.23 Standard Error 50.00 Observations 15.00 ANOVA df SS MS F Signif F Regression 3 5994.24 2.40 0.12 Residual 11 27496.82 Total 45479.54 Coeff StdError t Stat p-value Lower 99.0\% Upper 99.0\% Intercept 123.80 48.71 2.54 0.03 -27.47 275.07 AGE 0.82 0.87 -0.95 0.36 -3.51 1.87 TICKETS 11.25 10.66 1.99 0.07 -11.86 54.37 DENSITY -3.14 6.46 -0.49 0.64 -23.19 16.91 -Referring to Instruction 13.7,the adjusted r2 is____________.

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Instruction 13.22 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X1 = % Attendance, X2 = Salaries and X3 = Spending: Instruction 13.22 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X<sub>1</sub> = % Attendance, X<sub>2 </sub>= Salaries and X<sub>3 </sub>= Spending:    -Referring to Instruction 13.22,there is sufficient evidence that all of the explanatory variables is related to the percentage of students passing the proficiency test. -Referring to Instruction 13.22,there is sufficient evidence that all of the explanatory variables is related to the percentage of students passing the proficiency test.

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Instruction 13.25 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signiff Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signiff Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.25 Model 1,there is sufficient evidence that at least one of the explanatory variables is related to the number of weeks a worker is unemployed due to a layoff at a 10% level of significance.

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Instruction 13.37 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signif F Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signif F Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.37 Model 1,the null hypothesis should be rejected at a 10% level of significance when testing 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.

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Instruction 13.37 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signif F Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signif F Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.37 Model 1,what is the p-value of the test statistic when testing whether age has any effect on the number of weeks a worker is unemployed due to a layoff,while holding constant the effect of all the other independent variables?

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Instruction 13.29 An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index). The Microsoft Excel output of this regression is partially reproduced below. OUTPUT SUMMARY Regression Statistics MultipleR 0.991 R Square 0.982 Adj. R Square 0.976 Std. Error 0.299 Observations 10 ANOVA df SS MS F Signiff Regression 2 33.4163 16.7082 186.325 0.0001 Residual 7 0.6277 0.0897 Total 9 34.0440 Coeff StdError t Stat p value Intercept -1.6335 0.5674 -0.152 0.8837 GDP 0.7654 0.0574 13.340 0.0001 Price -0.0006 0.0028 -0.219 0.8330 Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error -Referring to Instruction 13.29,to test whether aggregate price index has a negative impact on consumption,the p-value is

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Instruction 13.25 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. Model 1 Regression Statistics Multiple R 0.7035 R Square 0.4949 Adj. R Square 0.4030 Std. Error 18.4861 Observations 40 ANOVA df SS MS F Signiff Regression 6 11048.6415 1841.4402 5.3885 0.00057 Residual 33 11277.2586 341.7351 Total 39 223325.9 Coeff StdError tStat p value Lower 95\% Upper95\% Intercept 32.6595 23.18302 1.4088 0.1683 -14.5067 79.8257 Age 1.2915 0.3599 3.5883 0.0011 0.5592 2.0238 Edu -1.3537 1.1766 -1.1504 0.2582 -3.7476 1.0402 Job Yr 0.6171 0.5940 1.0389 0.3064 -0.5914 1.8257 Married -5.2189 7.6068 -0.6861 0.4974 -20.6950 10.2571 Head -14.2978 7.6479 -1.8695 0.0704 -29.8575 1.2618 Manager -24.8203 11.6932 -2.1226 0.0414 -48.6102 -1.0303 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: Mode 2 Regression Statistics Multiple R 0.6391 R Square 0.4085 Adj. R Square 0.3765 Std. Error 18.8929 Observations 40 ANOVA df SS MS F Signiff Regression 2 9119.0897 4559.5448 12.7740 0.0000 Residual 37 13206.8103 356.9408 Total 39 22325.9 Coeff StdError t Stat p value Intercept -0.2143 11.5796 -0.0185 0.9853 Age 1.4448 0.3160 4.5717 0.0000 Manager -22.5761 11.3488 -1.9893 0.0541 -Referring to Instruction 13.25 Model 1,which of the following is a correct statement?

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Instruction 13.39 As a project for his business statistics class, a student examined the factors that determined parking meter rates throughout the campus area. Data were collected for the price per hour of parking, number of city blocks to the centre of the university, and one of the three jurisdictions: on campus, in the CBD and off campus, or outside of the CBD and off campus. The population regression model hypothesised is: Yi = α + β1x1i + β2x2i + β3x2i + εi Where Y is the meter price x1 is the number of blocks to the centre of the university x2 is a dummy variable that takes the value 1 if the meter is located in the CBD and off campus and the value 0 otherwise x3 is a dummy variable that takes the value 1 if the meter is located outside of the CBD and off campus, and the value 0 otherwise The following Excel results are obtained. Instruction 13.39 As a project for his business statistics class, a student examined the factors that determined parking meter rates throughout the campus area. Data were collected for the price per hour of parking, number of city blocks to the centre of the university, and one of the three jurisdictions: on campus, in the CBD and off campus, or outside of the CBD and off campus. The population regression model hypothesised is: Yi = α + β<sub>1</sub>x<sub>1</sub><sub>i</sub> + β<sub>2</sub>x<sub>2</sub><sub>i</sub> + β<sub>3</sub>x<sub>2</sub><sub>i</sub> + ε<sub>i</sub> Where Y is the meter price x<sub>1</sub> is the number of blocks to the centre of the university x<sub>2</sub> is a dummy variable that takes the value 1 if the meter is located in the CBD and off campus and the value 0 otherwise x<sub>3</sub> is a dummy variable that takes the value 1 if the meter is located outside of the CBD and off campus, and the value 0 otherwise The following Excel results are obtained.    -Referring to Instruction 13.39,if one is already outside of the CBD and off campus but decides to park three more blocks from the centre of the university,the estimated mean parking meter rate will -Referring to Instruction 13.39,if one is already outside of the CBD and off campus but decides to park three more blocks from the centre of the university,the estimated mean parking meter rate will

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Instruction 13.22 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X1 = % Attendance, X2 = Salaries and X3 = Spending: Instruction 13.22 The education department's regional executive officer wanted to predict the percentage of students passing a Grade 6 proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average 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 Y = % Passing as the dependent variable, X<sub>1</sub> = % Attendance, X<sub>2 </sub>= Salaries and X<sub>3 </sub>= Spending:    -Referring to Instruction 13.22,there is sufficient evidence that the percentage of students passing the proficiency test depends on at least one of the explanatory variables. -Referring to Instruction 13.22,there is sufficient evidence that the percentage of students passing the proficiency test depends on at least one of the explanatory variables.

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Instruction 13.33 An econometrician is interested in evaluating the relation of demand for building materials to mortgage rates in Sydney and Melbourne. He believes that the appropriate model is Y=10+5+8 where = mortgage rate in \% =1 if Sydney, 0 if Melbourne Y = demand in \ 100 per capita -Referring to Instruction 13.33,holding constant the effect of city,each additional increase of 1% in the mortgage rate would lead to an estimated increase of_______________ per capita in the mean demand.

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When a dummy variable is included in a multiple regression model,the interpretation of the estimated slope coefficient does not make any sense anymore.

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Instruction 13.20 You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premium depends 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 Microsoft Excel and obtained the following information: Instruction 13.20 You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premium depends 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 Microsoft Excel and obtained the following information:    -Referring to Instruction 13.20,the residual mean squares (MSE)that is missing in the ANOVA table should be _____. -Referring to Instruction 13.20,the residual mean squares (MSE)that is missing in the ANOVA table should be _____.

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