The following are the EXCEL regression results using monthly Comcast cable bill for a household as the dependent variable (y) and the number of televisions in the household (TV, x1), the number of people living in the household (People, x2), and the number of years that household has been a Comcast customer (Years, x3) as independent variables. The regression mode is: What is the proper interpretation for the parameter estimate for TV (8.3615)? Each additional television in the household increases monthly cable bill by $8,361.50. Each additional television in the household decreases monthly cable bill by $8,361.50. Each additional television in the household increases monthly cable bill by $8.36. Each additional television in the household decreases monthly cable bill by $8.36. If you were to conduct a Global F Test to test the overall usefulness of the regression model you followed above, what should be the proper hypotheses? The proper observed F value to conduct the Global F Test, F0, is: 0.7480 0.5595 6.7700 15.3343 If you were to conduct the test using the critical value approach, the critical F value, Fα, to conduct this F test at 5% level of significance is: 3.2389 4.6700 2.4618 3.6370 What should be the conclusion for this Global F Test? Fail to reject the null hypothesis and fail to accept the alternative hypothesis and hence the model is acceptable. Reject the null hypothesis and accept the alternative hypothesis and hence the model is not good enough. Fail to reject the null hypothesis and fail to accept the alternative hypothesis and hence the model is not acceptable. Reject the null hypothesis and accept the alternative hypothesis and hence the model is acceptable.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The following data provides the monthly Comcast cable bill for a random sample of 20 households along with the number of televisions in the household (TV), the number of people living in the household (People), and the number of years that household has been a Comcast customer (Years).
|
Bill |
TV |
People |
Years |
|
$56 |
1 |
3 |
8 |
|
$59 |
3 |
5 |
11 |
|
$67 |
3 |
2 |
3 |
|
$75 |
2 |
3 |
8 |
|
$76 |
4 |
1 |
8 |
|
$82 |
1 |
5 |
4 |
|
$84 |
3 |
3 |
3 |
|
$84 |
1 |
3 |
8 |
|
$84 |
4 |
4 |
4 |
|
$90 |
2 |
4 |
3 |
|
$91 |
3 |
5 |
5 |
|
$100 |
2 |
7 |
9 |
|
$100 |
2 |
2 |
5 |
|
$102 |
4 |
4 |
6 |
|
$104 |
3 |
5 |
10 |
|
$104 |
3 |
4 |
6 |
|
$112 |
4 |
3 |
2 |
|
$114 |
4 |
5 |
8 |
|
$130 |
5 |
5 |
1 |
|
$135 |
5 |
6 |
7 |
The following are the EXCEL regression results using monthly Comcast cable bill for a
household as the dependent variable (y) and the number of televisions in the household (TV, x1), the number of people living in the household (People, x2), and the number of years that household has been a Comcast customer (Years, x3) as independent variables. The regression
- What is the proper interpretation for the parameter estimate for TV (8.3615)?
- Each additional television in the household increases monthly cable bill by $8,361.50.
- Each additional television in the household decreases monthly cable bill by $8,361.50.
- Each additional television in the household increases monthly cable bill by $8.36.
- Each additional television in the household decreases monthly cable bill by $8.36.
- If you were to conduct a Global F Test to test the overall usefulness of the regression model you followed above, what should be the proper hypotheses?
- The proper observed F value to conduct the Global F Test, F0, is:
- 0.7480
- 0.5595
- 6.7700
- 15.3343
- If you were to conduct the test using the critical value approach, the critical F value, Fα, to conduct this F test at 5% level of significance is:
- 3.2389
- 4.6700
- 2.4618
- 3.6370
- What should be the conclusion for this Global F Test?
- Fail to reject the null hypothesis and fail to accept the alternative hypothesis and hence the model is acceptable.
- Reject the null hypothesis and accept the alternative hypothesis and hence the model is not good enough.
- Fail to reject the null hypothesis and fail to accept the alternative hypothesis and hence the model is not acceptable.
- Reject the null hypothesis and accept the alternative hypothesis and hence the model is acceptable.
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