Access over 20 million homework & study documents

Information on Customers Ratings of Your Product Exercise

Content type
User Generated
Subject
Statistics
Type
Other
Rating
Showing Page:
1/2
The data attached contains information on customers’ ratings of your product (CustRate), on a
scale of 1 to 100, along with demographic information. The demographic information includes:
income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals
one if the respondent is married and zero otherwise. Assume the data-generating process can be
written as:
CustRate
i
=α+β
1
Inc
i
2
Age
i
3
Educ
i
4
Marr
i
+U
i
.
a. Test the hypothesis that income has no impact on customer rating, using a confidence
level of 95%. Be sure to provide the reasoning behind your result.
Using the excel regression output,
CustRate
i
=α+β
1
Inc
i
2
Age
i
3
Educ
i
4
Marr
i
+U
i
.
Let CustRate=Y
Inc=X1
Age=X2
Edu=X3
Marri=X4
So, Y=-4.7334 + 0.0005X1 + 0.1090X3 - 0.2668X4 + U
i
.
Ho: X1 has no impact on Y
Ha: X1 has an impact on Y
Assume that the error in the term in the regression model is a normal random variable with mean
zero and variance σ² ~ (U N(0, σ²)
Determine the test statistic:
Being that the sample size is greater that 30, the appropriate test statistic is z-test
Test statistic=5.3334
P value=2.47
Critical value at 95% confidence level= 1.96
Since the test statistic is much greater than the critical value, we reject the null hypothesis and
conclude that there is a statistically significant impact of income on the customer rating
b. Test the hypothesis that β2=0.05, using a confidence level of 90%. Be sure to provide the
reasoning behind your result.
Ho: X2 has no impact on Y

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/2

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
The data attached contains information on customers’ ratings of your product (CustRate), on a scale of 1 to 100, along with demographic information. The demographic information includes: income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals one if the respondent is married and zero otherwise. Assume the data-generating process can be written as: CustRatei=α+β1Inci+β2Agei+β3Educi+β4Marri+Ui. a. Test the hypothesis that income has no impact on customer rating, using a confidence level of 95%. Be sure to provide the reasoning behind your result. Usi ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Just what I needed. Studypool is a lifesaver!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4