Answered: What is a dummy variable trap and how…

What is a dummy variable trap and how is it related to multicollinearity of regressors? What is the solution for this form of multicollinearity?

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 40E

See similar textbooks

Similar questions

P.MS.AMPA x 1.GEOMETRYCP. MS.AMPARO94/_layouts/15/Doc.aspx?sourcedoc%3{cf5f1c7b-680c-4e0a-a691-ada5a1d2... Cortes, O Notebook S1.P3.GEOMETRY CP.MS.AMPARO Notebook L Immersive Reader A This page is locked and can't be edited at this time. Select the transformations that take figure F to figure . (GCO.5) F it... n... Reflect figure F across the *axis. Rotate figure F 90° clockwise around the origin. a. C. b Reflect figure F across the Y axis. d. Rotate figure F 180° counterclockwise around the origin. Enter your answer
Professor Cambridge collected data from each of his 1st year Chemistry student. If the population if Professor Cambridge’s Chemistry students (all students in the data set) is it possible to calculate the parameters? Or it is limited only to statistics? Why do you think so? If the population involves both the junior and senior students, and the dataset is the sample from that population, is it possible to calculate the parameters for that population? Or is it limited to statistics? Why do you think so?
3
Due to the increasing number of customers, MTAKUJA commercial Bank located at the University of Dar es Salaam has been facing the problem of long customers' queues since the beginning of this year. The Branch manager decided to conduct a small study to determine the cause of this problem. The study concluded that most of its bank tellers were slow and less efficient. However, the study recommended that the long queues would decrease substantially if at least two of its three banks tellers are operating efficiently. Therefore, to solve this problem the bank came up with the new policy that each bank taller should process at least 25 customers per hour. The probability that the first, second and third bank tellers will fail to comply with the new policy is 0.12, 0.09 and 0.1 respectively. Assume that the three counters at MTAKUJA bank operate independent of each other, find the probability that the queues will decrease substantially.
Fit a straight line trend by the method of least squares for the following consumer price index numbers of the industrial workers. Year 2010 2011 2012 2013 2014 Index number 166 177 198 221 225
The Minister of National Security in Trinidad and Tobago is interested in determining the factors that influence the number of crimes that are reported. You are tasked to develop a model using the appropriate variables. The following variables are utilized: X1 = total overall reported crime rate per 100,000 residents X2 = reported violent crime rate per 100,000 residents X3 = % of people 25 years+ with 4 yrs. of high school X4 = % of 16 to 19-year-olds not in high school and not high school graduates. X5 = % of 18 to 24-year-olds in college X6 = % of people 25 years+ with at least 4 years of college X1 X2 X3 X4 X5 X6 478 184 74 11 31 20 494 213 72 11 43 18 643 347 70 18 16 16 341 565 71 11 25 19 773 327 72 9 29 24 603 260 68 8 32 15 484 325 68 12 24 14 546 102 62 13 28 11 424 38 69 7 25 12 548 226 66 9 58 15 506 137…
The Minister of National Security in Trinidad and Tobago is interested in determining the factors that influence the number of crimes that are reported. You are tasked to develop a model using the appropriate variables. The following variables are utilized: X1 = total overall reported crime rate per 100,000 residents X2 = reported violent crime rate per 100,000 residents X3 = % of people 25 years+ with 4 yrs. of high school X4 = % of 16 to 19-year-olds not in high school and not high school graduates. X5 = % of 18 to 24-year-olds in college X6 = % of people 25 years+ with at least 4 years of college X1 X2 X3 X4 X5 X6 478 184 74 11 31 20 494 213 72 11 43 18 643 347 70 18 16 16 341 565 71 11 25 19 773 327 72 9 29 24 603 260 68 8 32 15 484 325 68 12 24 14 546 102 62 13 28 11 424 38 69 7 25 12 548 226 66 9 58 15 506 137 60 13…
2 A balanced design will be an orthogonal design True False 3 An orthogonal design will necessarily be balanced True False 4. A regression line with a categorical factor added in as well will essentially create separate trendiness for each of the levels of the categorical factor. True False 5 If there is an interaction between a categorical factor and a quantitative variable in a regression, it will allow the slopes to differ across the groups. True False 6 A quadratic model for a quantitative explanatory variable can be viewed as a self-interaction True False 7 If you have a categorical factor in a model where that factor does have an effect on the response variable, the F-ratio will tend to grow larger as the number of datapoints per level increases. True False 8 If you have a categorical factor in a model where that factor does have an effect on the response variable, the MSE tends to grow smaller as the number of…
Suppose we obtain data on prices of big-screen televisions and estimate the following model: In(Price) = 4.06 + 0.06 * Size +0.23 * Wide + 0.34 * Plasma + 0.21 * LCD+0.09 * Memory where the dependent variable has been transformed, Size is the screen size measured in inches, Wide is a dummy variable equal to one if the television is a widescreen, Plasma is a dummy variable equal to one if the television is a Plasma screen, LCD is equal to one if the television is an LCD screen, and Memory is a dummy variable equal to one if the television has any memory card slots. What is the estimated price of a 42" Widescreen Plasma television with 2 memory card slots? Select one: O a. 7.24 O b. 7.33 1525.38 O d. 1394.09 • e 1881.83 Clear my choice
4
7) An accountant wishes to predict direct labor cost (y) on the basis of the batch size (x) of a product produced in a job shop. Using data for 12 production runs, the least squares line has an intercept of 18.488 and a slope of 10.146. Please interpret the meanings of the intercept and the slope in this context. Do you think that the interpretation of the intercept does make practical sense?
When wildebeest are more abundant, they graze the grass more heavily, so there are fewer fires and moretrees grow. Lions feed more successfully when there are more trees, so the lion population increases. Thedata on one part of this cycle, wildebeest abundance (in thousands of animals) and the percent of the grassarea that burned in the same year are on the spreadsheet. To what extent do these data support the claim that more wildebeest reduce the percent of grasslands that burn? How rapidly does burned area decrease as the number of wildebeest increases? To answer these questions, create a scatterplot and add the regression line. Describe the scatterplot. Interpret the slope and intercept in context of the problem. Does the intercept explanation make sense in the real world? Find the correlation coefficient and coefficient of determination. What do they tell us about the relationship between number of wildebeest and percent of grassland burned? Beest (in 1000s) Percent Burned…