After studying the milk yields of a randomly selected sample of 900 cows, researchers felt that the presence of white spots (WS;) on a cow's body led to a different level of milk production (MP;). The researchers estimate the OLS regression: MP;= 5.52+0.26 × WS;, (2.23) (0.08) where WS, is a binary variable of the form: The 95% confidence interval for the coefficient B₁ is ( th 1, if the cow has white spots WS; = O, if the ith cow doesn't have white spots (Round your answers to four decimal places.) Based on this interval, we will the hypothesis ẞ₁ = 0 at the 5% significance level. Which of the following statements describes the way in which the coefficient of the indicator variable could be interpreted in this case? A. The coefficient is the sum of the conditional expectation of the presence of white spots on a cow with respect to the average milk production. B. The coefficient of the indicator variable is the slope of the regression equation. O C. The coefficient is the difference between the population means of the milk production of cows with and without white spots. D. The coefficient is the rate of change in the milk production due to a unit change in the number of cows with white spots.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 1E
Question

please answer correctly and comfirm my answer choice for the multiple choice 

GIVE ME THE INTERVAL AND WHETHER TO REJECT OR FAIL TO REJECT

After studying the milk yields of a randomly selected sample of 900 cows, researchers felt that the presence of white spots (WS;) on a cow's body led to a different level of milk production (MP;). The
researchers estimate the OLS regression:
MP;= 5.52+0.26 × WS;,
(2.23) (0.08)
where WS, is a binary variable of the form:
The 95% confidence interval for the coefficient B₁ is (
th
1, if the
cow has white spots
WS; =
O, if the ith cow doesn't have white spots
(Round your answers to four decimal places.)
Based on this interval, we will
the hypothesis ẞ₁ = 0 at the 5% significance level.
Which of the following statements describes the way in which the coefficient of the indicator variable could be interpreted in this case?
A. The coefficient is the sum of the conditional expectation of the presence of white spots on a cow with respect to the average milk production.
B. The coefficient of the indicator variable is the slope of the regression equation.
O C. The coefficient is the difference between the population means of the milk production of cows with and without white spots.
D. The coefficient is the rate of change in the milk production due to a unit change in the number of cows with white spots.
Transcribed Image Text:After studying the milk yields of a randomly selected sample of 900 cows, researchers felt that the presence of white spots (WS;) on a cow's body led to a different level of milk production (MP;). The researchers estimate the OLS regression: MP;= 5.52+0.26 × WS;, (2.23) (0.08) where WS, is a binary variable of the form: The 95% confidence interval for the coefficient B₁ is ( th 1, if the cow has white spots WS; = O, if the ith cow doesn't have white spots (Round your answers to four decimal places.) Based on this interval, we will the hypothesis ẞ₁ = 0 at the 5% significance level. Which of the following statements describes the way in which the coefficient of the indicator variable could be interpreted in this case? A. The coefficient is the sum of the conditional expectation of the presence of white spots on a cow with respect to the average milk production. B. The coefficient of the indicator variable is the slope of the regression equation. O C. The coefficient is the difference between the population means of the milk production of cows with and without white spots. D. The coefficient is the rate of change in the milk production due to a unit change in the number of cows with white spots.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage