Statistics for Business and Economics (13th Edition)
13th Edition
ISBN: 9780134506593
Author: James T. McClave, P. George Benson, Terry Sincich
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 12.10, Problem 12.113ACB
Risk management performance. An article in the International Journal of Production Economics (Vol. 171, 2016) investigated the factors associated with a firm’s supply chain risk management performance (y). Five potential independent variables (all measured quantitatively) were considered: (1) firm size, (2) supplier orientation, (3) supplier dependency, (4) customer orientation, and (5) systemic purchasing. Consider running a stepwise regression to find the best subset of predictors for risk management performance.
- a. How many 1-variable models are fit in step 1 of the stepwise regression? 5
- b. Assume supplier orientation is selected in step 1. How many 2-variable models are fit in step 2 of the stepwise regression? 4
- c. Assume systemic purchasing is selected in step 2. How many 3-variable models are fit in step 3 of the stepwise regression? 3
- d. Assume customer orientation is selected in step 3. How many 4-variable models are fit in step 4 of the stepwise regression? 2
- e. Through the first 4 steps of the stepwise regression, determine the total number of t-tests performed. Assuming each test uses an α = .05 level of significance, give an estimate of the probability of at least one Type I error in the stepwise regression. 14; .51
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Suppose researchers at an abdominal transplant clinic are concerned about the rate of graft loss due to diabetes status prior to receiving a donor kidney. Research has shown that gender discordance, or receiving a gender from a donor of an opposite gender may increase the risk of both exposure and outcome after transplant. Assume the following tables represent the stratified analysis of the potential confounding variable. (9 points)
Gender Discordance
Graft Failure
No Graft Failure
Total
Diabetes II
23
10
33
No Diabetes II
4
44
48
Total
27
54
81
Gender Concordance
Graft Failure
No Graft Failure
Total
Diabetes II
9
34
43
No Diabetes II
12
87
99
Total
21
121
142
A) Calculate the stratum specific estimates for the odds ratios in each strata.
B) Observe the difference in the odds ratios. Based on observation alone, what are we likely to conclude regarding the relationship between outcome and exposure…
Consider a linear regression model that relates school expenditures and family background to student performance in Massachusetts using 224 school districts. The response variable is the mean score on the MCAS (Massachusetts Comprehensive Assessment System) exam given in May 1998 to 10th-graders. Four explanatory variables are used: (1) STR is the student-to-teacher ratio, (2) TSAL is the average teacher’s salary, (3) INC is the median household income, and (4) SGL is the percentage of single family households. The Excel Regression output for the sample regression equation is given below.
(a) What proportion of the variation in MCAS score is explained by the explanatory variables?
(b) At the 5% level, are the explanatory variables jointly significant in explaining MCAS score? Explain briefly.
(c) At the 5% level, which variables are individually significant at predicting MCAS score? Explain briefly.
(d) Suppose a second regression model (Model 2) was generated using only…
Consider a linear regression model that relates school expenditures and family background to student performance in Massachusetts using 224 school districts. The response variable is the mean score on the MCAS (Massachusetts Comprehensive Assessment System) exam given in May 1998 to 10th-graders. Four explanatory variables are used: (1) STR is the student-to-teacher ratio, (2) TSAL is the average teacher’s salary, (3) INC is the median household income, and (4) SGL is the percentage of single family households. The Excel Regression output for the sample regression equation is given below.
(a) What proportion of the variation in MCAS score is explained by the explanatory variables?
(b) At the 5% level, are the explanatory variables jointly significant in explaining MCAS score? Explain briefly.
(c) At the 5% level, which variables are individually significant at predicting MCAS score? Explain briefly.
(d) Suppose a second regression model (Model 2) was generated using only…
Chapter 12 Solutions
Statistics for Business and Economics (13th Edition)
Ch. 12.3 - Write a first-order model relating E(y) to a. two...Ch. 12.3 - Minitab was used to fit the model E(y) = (0 + 1x1...Ch. 12.3 - Suppose you fit the multiple regression model y =0...Ch. 12.3 - Suppose you fit the first-order multiple...Ch. 12.3 - Prob. 12.5LMCh. 12.3 - Prob. 12.6LMCh. 12.3 - Prob. 12.7LMCh. 12.3 - If the analysis of variance F-test leads to the...Ch. 12.3 - Ambiance of 5-star hotels. Although invisible and...Ch. 12.3 - Forecasting movie revenues with Twitter. Refer to...
Ch. 12.3 - Accounting and Machiavellianism. Refer to the...Ch. 12.3 - Prob. 12.12ACBCh. 12.3 - Predicting elements in aluminum alloys. Aluminum...Ch. 12.3 - Novelty of a vacation destination. Many tourists...Ch. 12.3 - Arsenic in groundwater. Environmental Science ...Ch. 12.3 - Reality TV and cosmetic surgery. How much...Ch. 12.3 - Contamination from a plant's discharge. Refer to...Ch. 12.3 - Cooling method for gas turbines. Refer to the...Ch. 12.3 - Rankings of research universities. Refer to the...Ch. 12.3 - Bubble behavior in subcooled flow boiling. In...Ch. 12.3 - Prob. 12.22ACICh. 12.3 - Prob. 12.23ACACh. 12.3 - Prob. 12.24ACACh. 12.4 - Characteristics of lead users. Refer to the...Ch. 12.4 - Prob. 12.26ACBCh. 12.4 - Reality TV and cosmetic surgery. Refer to the Body...Ch. 12.4 - Chemical plant contamination. Refer to Exercise...Ch. 12.4 - Prob. 12.29ACBCh. 12.4 - Arsenic in groundwater. Refer to the Environmental...Ch. 12.4 - Prob. 12.32ACICh. 12.4 - Prob. 12.33ACICh. 12.4 - Boiler drum production. In a production facility,...Ch. 12.5 - Suppose the true relationship between E(y) and the...Ch. 12.5 - Suppose you fit the interaction model y = 0 + x1 +...Ch. 12.5 - Prob. 12.37LMCh. 12.5 - Tipping behavior in restaurants. Can food servers...Ch. 12.5 - Forecasting movie revenues with Twitter. Refer to...Ch. 12.5 - Prob. 12.41ACBCh. 12.5 - Prob. 12.42ACBCh. 12.5 - Reality TV and cosmetic surgery. Refer to the Body...Ch. 12.5 - Factors that impact an auditors judgment. A study...Ch. 12.5 - Service workers and customer relations. A study in...Ch. 12.5 - Bubble behavior in subcooled flow boiling. Refer...Ch. 12.5 - Arsenic in groundwater. Refer to the Environmental...Ch. 12.5 - Cooling method for gas turbines. Refer to the...Ch. 12.6 - Write a second-order model relating the mean of y,...Ch. 12.6 - Prob. 12.50LMCh. 12.6 - Prob. 12.51LMCh. 12.6 - Prob. 12.52LMCh. 12.6 - Minitab was used to fit the complete second-order...Ch. 12.6 - Personality traits and job performance. When...Ch. 12.6 - Going for it on fourth-down in the NFL. Refer to...Ch. 12.6 - Prob. 12.56ACBCh. 12.6 - Prob. 12.57ACBCh. 12.6 - Assertiveness and leadership. Management...Ch. 12.6 - Goal congruence in top management teams. Do chief...Ch. 12.6 - Prob. 12.60ACICh. 12.6 - Revenues of popular movies. The Internet Movie...Ch. 12.6 - Prob. 12.62ACICh. 12.6 - Prob. 12.63ACICh. 12.6 - Prob. 12.64ACICh. 12.6 - Prob. 12.65ACICh. 12.7 - Write a regression model relating the mean value...Ch. 12.7 - Prob. 12.67LMCh. 12.7 - Prob. 12.68LMCh. 12.7 - Prob. 12.69LMCh. 12.7 - Prob. 12.70ACBCh. 12.7 - Prob. 12.71ACBCh. 12.7 - Prob. 12.72ACBCh. 12.7 - Prob. 12.73ACBCh. 12.7 - Buy-side vs. sell-side analysts earnings...Ch. 12.7 - Prob. 12.75ACBCh. 12.7 - Charisma of top-level leaders. Refer to the...Ch. 12.7 - Corporate sustainability and firm characteristics....Ch. 12.7 - Homework assistance for accounting students. Refer...Ch. 12.7 - Improving driving performance while fatigued....Ch. 12.7 - Prob. 12.80ACACh. 12.7 - Banning controversial sports team sponsors. Refer...Ch. 12.8 - Consider a multiple regression model for a...Ch. 12.8 - Prob. 12.83LMCh. 12.8 - Consider the model: y = 0+ 1x1+ 2 x2+ 3 x3+...Ch. 12.8 - Consider the model:...Ch. 12.8 - Prob. 12.86LMCh. 12.8 - Reality TV and cosmetic surgery. Refer to the Body...Ch. 12.8 - Do blondes raise more funds? Refer to the Economic...Ch. 12.8 - Prob. 12.89ACBCh. 12.8 - Buy-side vs. sell-side analysts earnings...Ch. 12.8 - Workplace bullying and intention to leave....Ch. 12.8 - Agreeableness, gender, and wages. Do agreeable...Ch. 12.8 - Chemical plant contamination. Refer to Exercise...Ch. 12.8 - Prob. 12.94ACICh. 12.8 - Recently sold, single-family homes. The National...Ch. 12.8 - Charisma of top-level leaders Refer to the Academy...Ch. 12.9 - Determine which pairs of the following models are...Ch. 12.9 - Prob. 12.98LMCh. 12.9 - Prob. 12.99LMCh. 12.9 - Shared leadership in airplane crews. Refer to the...Ch. 12.9 - Buy-side vs. sell-side analysts earnings...Ch. 12.9 - Workplace bullying and intention to leave. Refer...Ch. 12.9 - Cooling method for gas turbines. Refer to the...Ch. 12.9 - Prob. 12.104ACBCh. 12.9 - Reality TV and cosmetic surgery. Refer to the Body...Ch. 12.9 - Study of supervisor-targeted aggression....Ch. 12.9 - Prob. 12.107ACICh. 12.9 - Recently sold, single-family homes. Refer to the...Ch. 12.9 - Prob. 12.109ACICh. 12.9 - Prob. 12.110ACACh. 12.10 - Prob. 12.111LMCh. 12.10 - Teacher pay and pupil performance. In Economic...Ch. 12.10 - Risk management performance. An article in the...Ch. 12.10 - Accuracy of software effort estimates....Ch. 12.10 - Diet of ducks bred for broiling. Corn is high in...Ch. 12.10 - Reality TV and cosmetic surgery. Refer to the Body...Ch. 12.10 - Prob. 12.117ACICh. 12.10 - Prob. 12.118ACICh. 12.10 - Prob. 12.119ACICh. 12.12 - Identify the problem(s) in each of the residual...Ch. 12.12 - Consider fitting the multiple regression model...Ch. 12.12 - Emotional intelligence and team performance. Refer...Ch. 12.12 - State casket sales restrictions. Some states...Ch. 12.12 - Personality traits and job performance. Refer to...Ch. 12.12 - Women in top management. Refer to the Journal of...Ch. 12.12 - Accuracy of software effort estimates. Refer to...Ch. 12.12 - Arsenic in groundwater. Refer to the Environmental...Ch. 12.12 - Reality TV and cosmetic surgery. Refer to the Body...Ch. 12.12 - Failure times of silicon wafer microchips. Refer...Ch. 12.12 - Bubble behavior in subcooled flow boiling. Refer...Ch. 12.12 - Banning controversial sports team sponsors. Refer...Ch. 12.12 - Cooling method for gas turbines. Refer to the...Ch. 12.12 - Agreeableness, gender, and wages. Refer to the...Ch. 12 - Suppose you have developed a regression model to...Ch. 12 - When a multiple regression model is used for...Ch. 12 - Suppose you fit the model y=0+1x1+2x12+3x2+4x1x2+...Ch. 12 - Prob. 12.137LMCh. 12 - Prob. 12.138LMCh. 12 - Prob. 12.139LMCh. 12 - Prob. 12.140LMCh. 12 - Prob. 12.141LMCh. 12 - Prob. 12.142LMCh. 12 - Prob. 12.143LMCh. 12 - Prob. 12.144LMCh. 12 - Comparing private and public college tuition....Ch. 12 - Prob. 12.146ACBCh. 12 - Prob. 12.147ACBCh. 12 - Highway crash data analysis. Researchers at...Ch. 12 - Prob. 12.149ACBCh. 12 - Mental health of a community. An article in the...Ch. 12 - Prob. 12.151ACBCh. 12 - Testing tires for wear. Underinflated or...Ch. 12 - Prob. 12.153ACBCh. 12 - Prob. 12.154ACBCh. 12 - Prob. 12.155ACBCh. 12 - Prob. 12.156ACBCh. 12 - Prob. 12.157ACBCh. 12 - Promotion of supermarket vegetables. A supermarket...Ch. 12 - Yield strength of steel alloy. Industrial...Ch. 12 - Prob. 12.160ACICh. 12 - Prob. 12.161ACICh. 12 - Improving Math SAT scores. Refer to the Chance...Ch. 12 - Prob. 12.163ACICh. 12 - Prob. 12.164ACICh. 12 - Prob. 12.165ACICh. 12 - Prob. 12.166ACICh. 12 - Sale prices of apartments. A Minneapolis,...Ch. 12 - Volatility of foreign stocks. The relationship...Ch. 12 - Prob. 12.169ACICh. 12 - Prob. 12.170ACICh. 12 - State casket sales restrictions Refer to the...Ch. 12 - Modeling monthly collision claims. A medium-sized...Ch. 12 - Developing a model for college GPA. Many colleges...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Find the equation of the regression line for the following data set. x 1 2 3 y 0 3 4arrow_forwardConsider a linear regression model that relates school expenditures and family background to student performance in Massachusetts using 224 school districts. The response variable is the mean score on the MCAS (Massachusetts Comprehensive Assessment System) exam given in May 1998 to 10th-graders. Four explanatory variables are used: (1) STR is the student-to-teacher ratio, (2) TSAL is the average teacher’s salary, (3) INC is the median household income, and (4) SGL is the percentage of single family households. The Excel Regression output for the sample regression equation is given below. (a) What proportion of the variation in MCAS score is explained by the explanatory variables? (b) At the 5% level, are the explanatory variables jointly significant in explaining MCAS score? Explain briefly. (c) At the 5% level, which variables are individually significant at predicting MCAS score? Explain briefly. (d) Suppose a second regression model (Model 2) was generated using only…arrow_forwardAnarrow_forward
- Which of the following is not determined in the case of multiple linear regression? A) Potential confounding effects from “lurking” variables included in the analysis B) Observed relationship between predictor and outcome variables adjusting for confounding relationshipsC) Causal relationships between predictor and outcome variables adjusting for confounding relationships D) Potential observed interaction effects between variablesarrow_forwardJensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data of these three variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownership by debt ratio and dividend payout. Comment on the regression coefficients.arrow_forwardSuppose that you have several hypotheses to test, as follow:H1: Costumer focus has a significant positive relationship with organization performance.H2: Continuous improvement has a significant negative relationship with organization performance.H3: Employee involvement has a significant negative relationship with organization performance.H4: Top management support has a significant positive relationship with organization performance.H5: Supplier management has a significant positive relationship with organization performance.After you analyze the data using linear regression analysis, the result showed as follow: MODEL SUMMARY Model R R Square Adjusted R Square Std. Error of the Estimate 1 .674a 0.579 0.467 0.833 ANNOVA Model Sum of Squares df Mean Square F Sig. Regression 85.400 6 13.673 23.547 .000b Residual 140.500 195 .695 Total 218.500 198 a. Dependent Variable: Organization Performance b. Predictors: (Constant), Customer focus,…arrow_forward
- The manager Concerned about her current customer base, manager Andersen started to think of factors that might affect the attractiveness of an auditing firm. Of course, the service quality provided and the fees charged by the auditor seem two important factors. Next, she decides that the reputation of the auditing firm also needs to be included in the framework as an independent variable. As illustrated by the dramatic effects of recent auditing scandals, reputation seems especially important for large auditors (i.e., auditing firms that are large in size). Finally, manager Andersen also thinks that the proximity of the auditing firm to the customer is another variable to be included as an independent variable. Proximity very likely affects the possibility for the client to personally meet with the auditors on a regular basis and she knows from her own contact with customers that they perceive personal interactions as quite important. Consider the above scenario shown; answer the…arrow_forwardIn general, what are some problems with using regression to measure causal effects?arrow_forwardAssume we have data demonstrating a strong linear link between the amount of fertilizer applied to certain plants and their yield. Which is the independent variable in this research question?arrow_forward
- Mumbai Electronics is planning to extend its marketing region from the western United States to include the midwestern states. In order to predict its sales in this new region, the company has asked you to develop a linear regression of DVD system sales on price, using the following data supplied by the marketing department: Sales 418 384 343 407 432 386 444 427 Price 98 194 231 207 89 255 149 195 (a) Use an unbiased estimation procedure to find an estimate of the variance of the error terms in the population regression. (b) Use an unbiased estimation procedure to find an estimate of the variance of the least squares estimator of the slope of the population regression line. (c) Find a 90% confidence interval for the slope of the population regression line.arrow_forwardBill wants to explore factors affecting work stress. He would like to examine the relationship between age, number of years at the workplace, perceived social support, and work stress. He collects data on the variables from 100 employees (males and females) working in banks. The research question is How accurately can work stress be predicted from linear combination of the predictors (age, social support, number of years at the workplace)? Conduct a multiple regression analysis to answer the following questions: State the hypothesis for this study.arrow_forwardTo properly examine the effect of a categorical independent variable in a multiple linear regression model we use an interaction term. True O Falsearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin HarcourtFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage LearningGlencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY