Results of Regressions of Average Hourly Earnings on Gender andEducation Binary Variables and Other Characteristics Using Datafrom the Current Population SurveyDependent variable: average hourly earnings (AHE).Regressor(1)(2)(3)5.595.55College (X,)5.57Female (X2)-2.69-2.67-2.670.300.30Age (X3)0.70Northeast (X4)0.61Midwest (Xs)-0.28South (X)Intercept12.944.493.83Summary StatisticsSER6.406.346.330.1800.1940.1980.193ok970.180410041004100Using the regression results in column (2):On average, a worker eans $ per hourfor each year that he or she ages.

The regression equation for the second column is Y = 4.49 + 5.59(X1) - 2.67(X2) + 0.30 (X3) taking…

Answered: Results of Regressions of Average Houry…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Scenario: The following model was fitted to data on gas mileage as a function of weight of vehicle and type of vehicle (sport utility vehicle, family sedan, subcompact). Model: MPG = 50 - 0.004WT - 8SUV - 3FS MPG =miles per gallon; WT=weight of vehicle; SUV=sport utility vehicle; FS=family sedan Answer the questions below. 1. Each pound of weight reduces fuel economy by MPG 2. Fuel economy is reduced by MPG for a sport utility vehicle 3. Fuel economy is reduced by MPG for a family sedan 4. For a subcompact car weighing 1000 pounds, what is the predicted fuel economy?
Thank You for Smoking? You are interested in the effect of a new smoking restriction implemented by restaurants. That is, the effect of restaurants implementing a no-smoke zone within 15 feet of their premises on the number of packs of cigarettes smoked per day. You first run the following regression: cigs BoBieduc + B₂income+ = + B3age²+ B4restaurn + B5 ln(cigprice) + u Where cigs is the number of cigs smoked per day, education is the number of years of formal schooling, income is annual income, in terms of 1000s, age is in years, restaurn is a dummy variable = 1 if the restaurant implemented this new smoking policy, and In(cigprice) is the log of the cigarette price. You get the following regression printout: Source Model Residual Total cigs educ income SS 3546.27245 148207.41 151753.683 df agesq restaurn lcigpric -.0307437 _cons 5 801 Coef. Std. Err. 806 -.4027925 .0001243 -.0007576 .000312 -2.990738 1.129767 .1694947 .0000559 Answer the following questions. 13.68142 23.94006 MS…
Note: If your answer does not exactly match the correct choice, it is due to rounding of intermediate calculations. To avoid the discrepancy, do your calculations in Excel without rounding. A life insurance company wishes to examine the relationship between the amount of life insurance held by a family and family income. From a random sample of households, the company collected the accompanying data. The data are in units of thousands of dollars. INSUR INCOME 97 38 141 29 y = X = Let INSUR 280 75 %3D INCOME 303 81 453 137 357 77 199 43 251 53 807 184 147 45 272 70 537 128 527 117 245 55 483 116 673 204 194 46 154 51 163 48 2 The denominator of the slope coefficient formula for the estimated regression equation is: 108,450.87 280 69 a 507 140 b 105,805.73 464 136 103,225.10 321 71 d 100,707.41 873 206 476 144 574 111 251 65 497 130 826 171 133 32 259 82 281 73 446 146 332 77 219 48 208 55 180 48 169 42 273 69 502 127 547 126 281 80 428 143 370 77 221 49 214 51
In the regression equation, what is B0? Group of answer choices the population slope the sample y-intercept the sample slope the population y-intercept
INSUR A life insurance company wishes to examine the relationship between the amount of life insurance held by a family and family income. From a random sample of households, the company collected the accompanying data. The data are in units of thousands of dollars. INCOME 97 38 141 29 y = x = Let INSUR 280 75 INCOME 303 81 453 137 The numerator of the slope coefficient formula for the estimated regression equation is: 357 77 a 400,201.10 199 43 b 392,354.02 251 53 384,660.80 807 184 d 377,118.44 147 45 272 70 537 128 527 117 245 55 483 116 673 204 194 46 154 51 163 48 280 69 507 140 464 136 321 71 873 206 476 144 574 111 251 65 497 130 826 171 133 32 259 82 281 73 446 146 332 77 219 48 208 55 180 48 169 42 273 69 502 127 547 126 281 80 428 143 370 77 221 49 214 51
QUESTION 39 A researcher reports an independent-measures t-statistic with degrees of freedom = 38 . How many participants were in the entire study? 20 40 39 76
A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan. Interest Rate (%) Number of Cars Sold (100s) 3 5 10 7 8 2 The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output. Regression Statistics Multiple R0.998868 R2 0.997738 Coefficient |14.88462 Interest Rate -1.61538 Intercept 1. Are there factors other than interest rate charged for a loan that the finance manager should consider in predicting future car sales? 2. Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning.The dealership's vice- president of marketing has requested a sales forecast at the prevailing interest rate of 7%. 3. As finance manager, what reasons would you convey to the vice-president in recommending…
T or F A household is frequently used in analyses because more consistent data are usually collected at that level.
determine the regression line equation plot the line on a graph and summarize the results( reject or do not) is there enough evidence?
the unemployment rate for 18- to 34-year-olds was reported to be 10.8% (the Cincinnati Enquirer, november 6, 2012). assume that this report was based on a random sample of four hundred 18- to 34-year-olds. a. a political campaign manager wants to know if the sample results can be used to conclude that the unemployment rate for 18- to 34-years-olds is significantly higher than the unemployment rate for all adults. according to the bureau of labor Statistics, the unemployment rate for all adults was 7.9%. develop a hypothesis test that can be used to see if the conclusion that the unemployment rate is higher for 18- to 34-year-olds can be supported.b. use the sample data collected for the 18- to 34-year-olds to compute the p-value for the hypothesis test in part (a). using a 5 .05, what is your conclusion?c. explain to the campaign manager what can be said about the observed level of significance for the hypothesis testing results using the p-value
The OLS estimation of the relationship between GRADE and HOURS of studying gives the following fitted equation (standard errors in parentheses): GRADEA = 38.15+0.048*HOURS (6.85) (0.01) Calculate the corresponding t statistic to test the slope coefficient for significance (Use two decimal places without rounding)
QUESTION 7 Which is NOT true about the coefficient of determination? As you add more variables, the R-square generally rises. As you add more variables, the adjusted R-square can fall. If the R-square is above 50%, the regression is considered significant. The R-square gives the percent of the variation in the dependent variable that is explained by the independent variables. The higher is the R-square, the better is the fit.

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