You collect data on 26 metropolitan areas to analyze average monthly debt paymen
ID: 3060741 • Letter: Y
Question
You collect data on 26 metropolitan areas to analyze average monthly debt payments in terms of income and the unemployment rate. The data are shown in the accompanying table. Use Table 4. http://lectures.mhhe.com/connect/0078020557/Table/table4.jpg
LInke to the excel http://lectures.mhhe.com/connect/0078020557/Ch16/Static/Ch16_Q11_Data_File.xlsx
Metropolitan Area
Income
(in $1,000s)
Unemployment
Debt
Washington, D.C.
$103.5
6.3%
$1,285
Seattle
81.7
8.5
1,135
Baltimore
82.2
8.1
1,133
Boston
89.5
7.6
1,133
Denver
75.9
8.1
1,104
San Francisco
93.4
9.3
1,098
San Diego
75.5
10.6
1,076
Sacramento
73.1
12.4
1,045
Los Angeles
68.2
12.9
1,024
Chicago
75.1
9.7
1,017
Philadelphia
78.3
9.2
1,011
Minneapolis
84.0
7.0
1,011
New York
78.3
9.3
989
Atlanta
71.8
10.3
986
Dallas
68.3
8.4
970
Phoenix
66.6
9.1
957
Portland
71.2
10.2
948
Cincinnati
69.5
9.3
920
Houston
65.1
8.7
889
Columbus
68.6
8.3
888
St. Louis
68.3
9.9
886
Miami
60.2
14.5
867
Detroit
69.8
15.7
832
Cleveland
64.8
9.6
812
Tampa
59.4
12.6
791
Pittsburgh
63.0
8.3
763
Metropolitan Area
Income
(in $1,000s)
Unemployment
Debt
Washington, D.C.
$103.5
6.3%
$1,285
Seattle
81.7
8.5
1,135
Baltimore
82.2
8.1
1,133
Boston
89.5
7.6
1,133
Denver
75.9
8.1
1,104
San Francisco
93.4
9.3
1,098
San Diego
75.5
10.6
1,076
Sacramento
73.1
12.4
1,045
Los Angeles
68.2
12.9
1,024
Chicago
75.1
9.7
1,017
Philadelphia
78.3
9.2
1,011
Minneapolis
84.0
7.0
1,011
New York
78.3
9.3
989
Atlanta
71.8
10.3
986
Dallas
68.3
8.4
970
Phoenix
66.6
9.1
957
Portland
71.2
10.2
948
Cincinnati
69.5
9.3
920
Houston
65.1
8.7
889
Columbus
68.6
8.3
888
St. Louis
68.3
9.9
886
Miami
60.2
14.5
867
Detroit
69.8
15.7
832
Cleveland
64.8
9.6
812
Tampa
59.4
12.6
791
Pittsburgh
63.0
8.3
763
Firefox File Edit View History Bookmarks Tools Window Help 88% Cha Mon 11:03 AM Ch. 16 Hw Chegg Study I Guided Solutio | ezto.rnheducation.com/hm.tpx Q Search ± lll @ a-1. Estimate the model Debt = 0 + |Inc + 2Unemp + E. (Round your answers to 4 decimal places.) Inc + 01 a-2. Is unemployment significant at the 5% level? Yes No c-1. Estimate Debt = 0 + 1 Inc + 2Unemp + 3Unemp4 . (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) Debt c-2. Determine if Unemp and Unemp2 are jointly significant at the 5% level. With the ttests, we conclude that Unemp and Unemp are jointly significant. With the t-tests, we cannot conclude that Unemp and Unemp are jointly significant. With the partial F-test, we conclude that Unemp and Unemp2 are jointly significant. With the partial F-test, we cannot conclude that Unemp and Unemp2 are jointly significant. References eBook & Resources Difficulty: 3 Hard Learning Objective: 16-01 Use and evaluate polynomial regression models. eckExplanation / Answer
Here the regression output is
so,
Debt^ = 198.9956 + 10.5122 * Income + 0.6186 * unemployement
(b) Here as we can see that p - value for employment is 0.92 so unemployment percentage is insignificant here.
(c) Now we will use unemp2 as independent variable here.
The summary output is
Here
Debt^ = -264.6230 + 11.4821 * Income + 73.9527 * unemp - 3.2393 * Unemp2
so Here also p - value for both the unemployment and unempoyment2 is greater than 0.05 so we can say that the coefficients are not significant here.
Option B is correct here.
SUMMARY OUTPUT Regression Statistics Multiple R 0.867562 R Square 0.752664 Adjusted R Square 0.731156 Standard Error 64.60976 Observations 26 ANOVA df SS MS F Regression 2 292170.8 146085.4 34.99536 Residual 23 96011.69 4174.421 Total 25 388182.5 Coefficients Standard Error t Stat P-value Intercept 198.9956 156.3619 1.27266 0.215854 Income 10.51216 1.476525 7.119525 2.98E-07 Unemp 0.618572 6.867902 0.090067 0.929014Related Questions
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