Economic Statistics 5 multiple choices

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Economics

SUNY at Albany

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Here are five multiple choice questions in Economic Statistics its about regression. just need the choice.

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1. Suppose that an equity analyst at a prestigious investment bank wants to determine the relationship between a corporation's sales (in million dollars) and the price of the corporation's stock (in dollars). She assumes that stock prices are the dependent variable in this relationship, while sales are the independent variable. From the monthly observations for the past 5 years, the following results are obtained. coefficients standard errors intercept 13.76 3.2 sales 5.08 1.3 Consider the following one-tailed hypothesis testing: Find the p-value and determine if the null hypothesis is rejected at 10%. (Use the standard normal approximation.) a. The p-value is 0.000%. The null hypothesis is rejected. b. The p-value is 0.000%. The null hypothesis is NOT rejected. c. The p-value is 10.960%. The null hypothesis is NOT rejected. d. The p-value is 5.480%. The null hypothesis is NOT rejected. e. The p-value is 10.960%. The null hypothesis is rejected. f. The p-value is 5.480%. The null hypothesis is rejected. 1 points Question 2 1. A fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief she gathers data about the last five winners of her favorite game show. She records their winnings in dollars and the number of years of education. The data are as follows. Years of education Winnings 12 700 16 400 12 600 16 600 14 200 She estimated a regression model using winnings as the dependent variable (Y) and years of education as the independent variable (X). She used the ordinary least squares estimator. What is the predicted change in winnings when the education of the winner increases by a year? a. decrease by $37.5 b. decrease by $50 c. decrease by $75 d. decrease by $62.5 e. decrease by $87.5 1 points Question 3 1. To study the per capita consumption of chicken in the united states, you are given the data on the following variables Y : per capital consumption of chickens in pounds X1 : disposable income per capital in pounds X2 : retail price of chicken per pound, in cents X3 : retail price of pork per pound, in cents X4 : retail price of beef per pound, in cents From microeconomic theory, it is known that the demand for a commodity generally depends on the income of the consumer, the price of the commodity, and the prices of substitute or complementary commodities. In view of these considerations, a multiple regression model is estimated and the following table shows the results. Coefficients Standard Errors Intercept 261.24 124.4 Disposable income -131.79 57.3 Price of chicken -32.24 12.4 Price of pork 54.78 24.9 Price of beef 44.98 34.6 Find all statistically significant variables at the significance level of 5%. a. Intercpet, price of chicken, and price of pork b. all coefficients c. intercept, disposable income, and price of chicken d. intercept, disposable income, price of chicken, and price of pork e. Intercept and price of chicken 1 points Question 4 1. At a concert, a survey was conducted that asked a random sample of 100 people their age and how many concerts they have attended last year. A regression model is estimated and the Excel output follows: df SS MS F Significant F Regression 1 91.19 91.19 99.74 0.00 Residual 98 89.60 0.91 Total 99 180.79 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -2.71 0.40 -6.78 0.00 -3.50 -1.91 Age 0.11 0.01 9.99 0.00 0.09 0.13 Find the coefficient of determination (also known as R-square) of this regression. a. 0.4570 b. 0.3533 c. 0.2359 d. 0.5044 e. 0.5965 1 points Question 5 1. A farmer wants to conduct a regression analysis to study the relationship between the bushels of corn per acre, Y, and the amount (in pounds) of fertilizer used per acre, X. Consider the corn produced as the dependent variable and the amount of fertilizer as the independent variable. Suppose that the sample mean and standard deviation of Y are 63 and 5 and that the sample mean and standard deviation of X are 20 and 2. Furthermore, their covariance is 12. Find the predicted amount of corn produced per acre when 20 pounds of fertilizer is used per acre. (Use the OLS estimators.) a. 57 b. 66 c. 63 d. 60 e. 69
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1. Suppose that an equity analyst at a prestigious investment bank wants to determine the
relationship between a corporation's sales (in million dollars) and the price of the corporation's
stock (in dollars).
She assumes that stock prices are the dependent variable in this relationship, while sales are the
independent variable.
From the monthly observations for the past 5 years, the following results are obtained.
coefficients

standard errors

intercept

13.76

3.2

sales

5.08

1.3

Consider the following one-tailed hypothesis testing:

Find the p-value and determine if the null hypothesis is rejected at 10%. (Use the standard normal
approximation.)
a. The p-value is 0.000%. The null hypothesis is rejected.
b. The p-value is 0.000%. The null hypothesis is NOT rejected.
c. The p-value is 10.960%. The null ...


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