The following model was estimated: Yi Bo Bixi + €₁ It is assumed that the variance of the error term takes the following form: E(e)² = ²x² Explain the form which heteroskedasticity takes in this case, and show how the equation can be transformed to remedy the problem of heteroskedasticity.
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- A paper gives data on x = change in Body Mass Index (BMI, in kilograms/meter2) and y = change in a measure of depression for patients suffering from depression who participated in a pulmonary rehabilitation program. The table below contains a subset of the data given in the paper and are approximate values read from a scatterplot in the paper. BMI Change (kg/m²) Depression Score Change S = The accompanying computer output is from Minitab. Depression score change 15- 10- -0.5 S Fitted Line Plot Depression score change = 6.577 +5.440 BMI change 20- 5.30586 Coefficients T 0.0 0.5 -0.5 R-sq 25.96% - 1 Term Coef Constant 6.577 BMI change 5.440 % 0.5 BMI change 1.0 SE Coef 2.28 2.90 9 0 0.1 0.7 0.8 1 1.5 4 T-Value 2.88 1.87 Interpret this estimate. s is the typical amount by which the ---Select--- line. 4 5 Regression Equation Depression score change = 6.577 +5.440 BMI change P-Value 0.0164 0.0906 S 5.30586 25.96% R-Sq R-Sq (adj) 18.56% 8 (b) Give a point estimate of o. (Round your answer to…Can you explain how I can find the variance for the data using the formula provided? I don’t understand what the numbers for E and X are.2. Suppose that in a certain chemical process the reaction time y (hour) is related to the temperature x (° F) in the chamber in which the reaction takes place according to the simple linear regression model with equation y= 5 - 0.01x and the standard deviation o=0.075. a. What is the expected reaction time when temperature is 250° F? b. Suppose that five observations are made independently on reaction time, each one for a temperature of 250° F. What is the probability that all five times are between 2.4 and 2.6 hours?
- LINEAR REGRESSION 1) An important company asks you as a professional to build a report where the products are evidenced defective ( x ) versus the number of times maintenance and supervision was performed on the machine ( y ) and they supply these data. (img 1) A. Find the coefficient of determination. comment on it B. Find the equation of the regression line and calculate the estimated data for each value of the independent variable. C. Determine the residual variance, the standard error of estimate, and the explained variance. comment themBxi + €i, where €; are independently and Consider a simple linear regression model Y; = identically distributed with mean 0 and variance o?, and i = 1,..., n. Note: this model does not have a intercept term. Derive the Best Linear Unbiased Estimator (BLUE) for B. Denote this by BBLUE. Make sure to state why this is the BLUE.The least-squares regression equation is y=784.6x+12,431 where y is the median income and x is the percentage of 25 years and older with at least a bachelor's degree in the region. The scatter diagram indicates a linear relation between the two variables with a correlation coefficient of 0.7962. In a particular region, 26.5 percent of adults 25 years and older have at least a bachelor's degree. The median income in this region is $29,889. Is this income higher or lower than what you would expect? Why?
- A professor obtains SAT scores and freshman grade point averages (GPAs) for a group of n = 15 college students. The SAT scores have a mean of M = 580 with SS = 22,400, and the GPAs have a mean of 3.10 with SS = 1.26, and SP = 84. A) Find the regression equation for predicting GPA from SAT scores. B) What percentage of the variance in GPAs is accounted for by the regression equation (i.e., compute the correlation, r, then find r2)? C) Does the regression equation account for a significant portion of the variance in GPA? Use a = .05 to evaluate the F-ratio.the following regression table where the dependent variable is the demandfor massage services in one city in the United States. Specifically, the dependent variable is the number of customers per hour (Models 1 and 2) or per day (Models 3 and 4). a) Explain why the coefficient for Population/1,000 in Model 2 is very different from the one in Model 4?The least-squares regression equation is y=620.6x+16,624 where y is the median income and x is the percentage of 25 years and older with at least a bachelor's degree in the region. The scatter diagram indicates a linear relation between the two variables with a correlation coefficient of 0.7004. Predict the median income of a region in which 30% of adults 25 years and older have at least a bachelor's degree.
- Consider the following population model for household consumption: cons = a + b1 * inc+ b2 * educ+ b3 * hhsize + u where cons is consumption, inc is income, educ is the education level of household head, hhsize is the size of a household. Suppose a researcher estimates the model and gets the predicted value, cons_hat, and then runs a regression of cons_hat on educ, inc, and hhsize. Which of the following choice is correct and please explain why. A) be certain that R^2 = 1 B) be certain that R^2 = 0 C) be certain that R^2 is less than 1 but greater than 0. D) not be certain4. A runner was tested on a treadmill. During the test, his speed x (in km/h) and his heart rate y were measured. The results are shown in the table. y 122 132 145 161 178 190 x 8 10 12 14 16 18 (a) Test for the significance of regression using the analysis of variance with a = 0.05. Find the P-value for this test. Can you conclude that the model specifies a useful linear relationship between these two variables? (b) Estimate ². (c) Estimate the standard error of the slope and intercept in this model. (d) Test the hypothesis that the increase in the speed of 1 km/h results in the runner's heart rate average increase of 7 points at a = 0.05. Suppose that the alternative hypothesis is that the average increase of the runner's heart rate in this situation does not equal 7 points.Q3 Part (A) Where investment (I), government expenditure (G), and gross domestic product (Y) are measured in US$ billion and ̂u is the regression residualIs there any problem of Hetroscedasticity in above model? How do you know?
