When regressing one variable on another, interest typically centers on the slope
ID: 3202069 • Letter: W
Question
When regressing one variable on another, interest typically centers on the slope coefficient. For each of the following regressions explain what you would expect the sign of the slope coefficient to be and why you would expect this sign. For example, if beef consumption per capita (pounds per person) is regressed on beef price (dollars per pound) then I would expect the slope to be negative because people demand less beef if the price goes up. Total US consumer spending (billions of dollars) vs. US personal disposable income (billions of dollars). Crime rate in US cities versus unemployment in those cities. Home prices versus the number of square feet in the house. d. Length of the winning long jump in the Olympics and the year the jump was made with data starting in 1904 and occurring every 4 years thereafter (except for war periods). The cancer rate in each of the US states versus that state's percentage of smokers.Explanation / Answer
(a) positive slope, more the personal disposable income, more the consumer spending.
(b) positive slope, more the unemployment more the crime rate is expected to increase.
(c) positive slope, home price is edpected to increase as the number of square feet increases.
(d) positive slope, for each olypmic the length of the winning jump has increased. as the year of occurrence increases , winning length increases.
(e) positive slope, cancer rate is expected to increase as the states percenage of soker increases.
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