You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression:(1) Accidents = 15.2 +0.23°Rain - 0.11*Rain2 + 0.08 Rain3 -0.0s Rain(7.1) (0.13)(0.05)(0.03)(0.02)(2) Accidents = 13.2 +0.14*Rain -0.09 Rain?+0.07 Rain3(5.1) (0.05)(0.03)(0.04)(3) Accidents= 75+0.24*Rain - 0.13 Rain2(3.6) (0.12)(0.07)(4) Accidents = 94 +0.18°Rain(2.3) (0.05)Based on a 5% significance level, which of the 4 specifications is the most appropriate model?O Specification1O Specification 2O Specification 3O Specification 4O None of them since Rain does not have a statistically significant effect on Accidents

Based from the specifications, we are to assume that the values under the regression equations are…

You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +023°Rain - 0.11 Rain² + 0.08 Rain3 -00s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents 132+0.14 Rain -0.009 Rain+007 Rain (5.1) (0.05) (0.03) (0.04) (3) Accidents - 75 +0.24*Rain - 0.13°Rain? (3.6) (0.12) (0.07) (4) Accidents = 9A + 0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification 1 O Specification 2 O Specification 3 OSpecification 4 O None of them since Rain does not have a statistically significant effect on Accidents

You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +023°Rain - 0.11 Rain² + 0.08 Rain3 -00s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents 132+0.14 Rain -0.009 Rain+007 Rain (5.1) (0.05) (0.03) (0.04) (3) Accidents - 75 +0.24*Rain - 0.13°Rain? (3.6) (0.12) (0.07) (4) Accidents = 9A + 0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification 1 O Specification 2 O Specification 3 OSpecification 4 O None of them since Rain does not have a statistically significant effect on Accidents

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q1
In the linear model ,E (X*u) = a)X*u b) 0 c) u d) none of tha above