5. The following regression results relate to a study of computer sales (in dollars) as a function of income (1) and season (Quarter 1 (Q1), Quarter 2 (Q2), and Quarter 3 (Q3)). Variable Intercept Income Q1 Q2 Q3 Income Income in dollars Q1=1 for quarter 1 and 0 otherwise Q2=1 for quarter 2 and 0 otherwise Q3=1 for quarter 2 and 0 otherwise Coefficient 418 0.82 -1.03 -12.65 -4.82 Standard error 120 0.34 0.60 2.58 1.23 (a) What is the interpretation of the coefficient on income? What is the interpretation of the coefficient on Q1? (b) Should we have included a dummy variable for quarter 4 in the regression? Why or why not? (c) Find an estimate for computer sales during quarter 1 when income was $20,000.
5. The following regression results relate to a study of computer sales (in dollars) as a function of income (1) and season (Quarter 1 (Q1), Quarter 2 (Q2), and Quarter 3 (Q3)). Variable Intercept Income Q1 Q2 Q3 Income Income in dollars Q1=1 for quarter 1 and 0 otherwise Q2=1 for quarter 2 and 0 otherwise Q3=1 for quarter 2 and 0 otherwise Coefficient 418 0.82 -1.03 -12.65 -4.82 Standard error 120 0.34 0.60 2.58 1.23 (a) What is the interpretation of the coefficient on income? What is the interpretation of the coefficient on Q1? (b) Should we have included a dummy variable for quarter 4 in the regression? Why or why not? (c) Find an estimate for computer sales during quarter 1 when income was $20,000.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:5. The following regression results relate to a study of computer sales (in dollars) as a function of income
(1) and season (Quarter 1 (Q1), Quarter 2 (Q2), and Quarter 3 (Q3)).
Variable
Intercept
Income
Q1
Q2
Q3
Income Income in dollars
Q1=1 for quarter 1 and 0 otherwise
Q2=1 for quarter 2 and 0 otherwise
Q3=1 for quarter 2 and 0 otherwise
Coefficient
418
0.82
-1.03
-12.65
-4.82
Standard error
120
0.34
0.60
2.58
1.23
(a) What is the interpretation of the coefficient on income? What is the interpretation of the coefficient
on Q1?
(b) Should we have included a dummy variable for quarter 4 in the regression? Why or why not?
(c) Find an estimate for computer sales during quarter 1 when income was $20,000.
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