A consultant's salary, captured by the random variable Y = B + X comes from a deterministic base B = 78 and a random bonus X. The bonus has mean E[X] = 16 and variance V[X] = 240. What is the expected value of the total compensation E[Y]?
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![A consultant's salary, captured by the random variable Y = B + X comes from a deterministic
base B = 78 and a random bonus X. The bonus has mean E[X] = 16 and variance V[X] =240.
What is the expected value of the total compensation E[Y]?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1858a710-c111-4513-9004-6c10bf7d1d6e%2F57ef1e22-3b13-4baf-bdb8-a08c777a8285%2Frxo0z8f_processed.png&w=3840&q=75)
Given that
E[X]=16, V[X]=240
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- Consider the following regression:Y = β0 + B1X1 + β2X2 + β3X1 · X2+ Ewhere• Y = wage• X1 = years of education • X2 =0 if race = white 1 if race =black-Write out the interpretations of β1 ,β2 , and β3in terms of expectations. Takethe expectation of Y conditional on race=white. take the expectation conditional onwage=black. Compute these expectations when education=0. -- Suppose β0 > 0, β1> 0, β2 < 0, β3 > 0. Sketch the race-specific returns to education?11) A simple linear regression model based on 20 observations. The F-stat for the model is 21.44 and the SSE is 1.41. The standard error for the coefficient of X is 0.2. a) Complete the ANOVA table. b) Find the t-stat of the co-efficient of X c) Find the co-efficient of X.Solve the second question in regression analysis
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- A prospective MBA student would like to examine the factors that impact starting salary upon graduation and decides to develop a model that uses program per-year tuition as a predictor of starting salary. Data were collected for 37 full-time MBA programs offered at private universities. The least squares equation was found Y; = -13258.594 + 2.422X;, where X; is the program per-year tuition and Y; is the predicted mean starting salary. To perform a residual analysis for these data, the following results are obtained. of regression have been seriously violated. Residual index plot QQ Plot of Residuals Residuals Residuals 20000- 20000 0. -20000 -20000 a) To evaluate whether the assumption of linearity has been violated, which of the following graph shou be examined? A. Predicted Values vs. Residuals B. Residual index plot C. QQ plot of residuals D. Residuals vs. Progrm Per-Year Tuition ($) b) To evaluate whether the assumption of normality has been violated, which of the following graph…Consider an investor borrowing at the risk free rate and investing a share of his wealth greater than one in the market portfolio. The beta of this investor’s portfolio is Equal to one Smaller than one Larger than one Equal to zeroState whether the statement is true, false or uncertain and explain the answers chosen. (a). The ordinary least squares approach can be used to estimate the logit. (b). The problem of whether being a female has an effect on earnings could be analyzed using the probit and logit estimation. (C). The Akaike's information criterion is useful for only non nested models
