Q19. A microeconomist wants to determine how corporate sales are influenced by c
ID: 3256713 • Letter: Q
Question
Q19. A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this µltiple regression.
SUMMARY OUTPUT
Referring to the tables, which of the following values for a is the smallest for which the regression model as a whole is significant?
a. 15,800.00
b. 16,520.07
c. 17,277.49
d. 20,455.98
Q20. A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X1) and how he/she scored on a business aptitude test (X2). A random sample of 8 employees provides the following:
Referring to Table 14-1, for these data, what is the estimated coefficient for the variable representing scores on the aptitude test, b2?A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X1) and how he/she scored on a business aptitude test (X2). A random sample of 8 employees provides the following:
Referring to the table, what is the estimated coefficient for the variable representing scores on the aptitude test, b2?
a. 0.998
b. 3.103
c. 4.698
d. 21.293
Q21. As a business statistics project, a student examined the factors that determine parking meter rates throughout the campus and downtown area. The campus is a group of buildings located in the center of downtown, with an open central quadrangle. Data were collected for the price of parking per hour and the number of blocks to the quadrangle. In addition, two dummy variables were coded to indicate the location of the parking meter (See below). The population regression model hypothesized is
Yi = ß0 + ß1x1i + ß2x2i + ß3x3i + ei
where
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that if x1 is less than 2, then the meter is on campus; if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise
x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise
The following Excel results are obtained.
Explanation / Answer
19. At intercept value of 15800.00 we see that the regression model as a whole is significant(significance F value = 0.0001). As this option is the smallest compared to all other, the correct answer is (a)
20. Solving the regression parameters we get the regression equation as Y = 21.29 + 3.103X1 + 4.698X2. Hence coefficient for X2 = b2 is 4.698. Option (c) is correct
21. Person is already outside of downtown and off campus. So x2=0 and x3=1. So change in price will be due to number of blocks to the quadrangle. Number of blocks = 3.
Change = -0.0045*3 = -0.0135
Hence decrease by 0.0135. Option (b)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.