Applied Statistics in Business and Economics
5th Edition
ISBN: 9781259329050
Author: DOANE
Publisher: MCG
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Chapter 13, Problem 20CR
(a)
To determine
Mention two ways to detect heteroscedasticity residuals.
(b)
To determine
Explain the potential consequence of this violation.
(c)
To determine
Explain the remedies that might be appropriate.
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1. Suppose observations yt follow a linear trend + white noise stochastic process:yt = c + βt + ϵtϵt ∼ W N(0, σ2)(a) Derive it’s unconditional mean.(b) Derive it’s unconditional variance function.(c) Derive it’s autocorrelation function.(d) Is yt covariance stationary ? Explain.
Chapter 13 Solutions
Applied Statistics in Business and Economics
Ch. 13.1 - Observations are taken on net revenue from sales...Ch. 13.1 - Observations are taken on sales of a certain...Ch. 13.1 - Prob. 3SECh. 13.1 - A regression model to predict Y, the...Ch. 13.2 - Refer to the ANOVA table below. (a) State the...Ch. 13.2 - Refer to the ANOVA table below. (a) State the...Ch. 13.2 - Prob. 7SECh. 13.2 - Refer to the ANOVA table below. (a) State the...Ch. 13.3 - Observations are taken on net revenue from sales...Ch. 13.3 - Observations are taken on sales of a certain...
Ch. 13.3 - Prob. 11SECh. 13.3 - A regression model to predict Y, the state...Ch. 13.4 - A regression of accountants starting salaries in a...Ch. 13.4 - An agribusiness performed a regression of wheat...Ch. 13.5 - Prob. 15SECh. 13.5 - A regression model to predict the price of...Ch. 13.5 - Prob. 17SECh. 13.5 - Prob. 18SECh. 13.6 - Prob. 19SECh. 13.6 - Prob. 20SECh. 13.7 - Prob. 21SECh. 13.7 - Using the Metals data, construct a correlation...Ch. 13.8 - Prob. 23SECh. 13.8 - Which violations of regression assumptions, if...Ch. 13 - (a) List two limitations of simple regression. (b)...Ch. 13 - (a) What does represent in the regression model?...Ch. 13 - Prob. 3CRCh. 13 - Prob. 4CRCh. 13 - Prob. 5CRCh. 13 - Prob. 6CRCh. 13 - Prob. 7CRCh. 13 - Prob. 8CRCh. 13 - Prob. 9CRCh. 13 - (a) State the formula for the standard error of...Ch. 13 - (a) What is a categorical predictor? (b) Why is a...Ch. 13 - Prob. 12CRCh. 13 - Prob. 13CRCh. 13 - (a) What is multicollinearity? (b) What are its...Ch. 13 - Prob. 15CRCh. 13 - (a) State the formula for a variance inflation...Ch. 13 - Prob. 17CRCh. 13 - Prob. 18CRCh. 13 - Prob. 19CRCh. 13 - Prob. 20CRCh. 13 - (a) Name two ways to detect autocorrelated...Ch. 13 - (a) What is a lurking variable? How might it be...Ch. 13 - Instructions for Data Sets: Choose one of the data...Ch. 13 - Note: Exercises marked are based on optional...Ch. 13 - Prob. 27CECh. 13 - Note: Exercises marked are based on optional...Ch. 13 - Note: Exercises marked are based on optional...Ch. 13 - Prob. 30CECh. 13 - Prob. 31CECh. 13 - Prob. 32CECh. 13 - Prob. 33CECh. 13 - Prob. 34CECh. 13 - Prob. 35CECh. 13 - Note: Exercises marked are based on optional...Ch. 13 - Note: Exercises marked are based on optional...Ch. 13 - Note: Exercises marked are based on optional...Ch. 13 - Prob. 39CECh. 13 - Prob. 40CECh. 13 - Prob. 41CECh. 13 - In a model of Fords quarterly revenue TotalRevenue...Ch. 13 - In a study of paint peel problems, a regression...Ch. 13 - A hospital emergency room analyzed n = 17,664...Ch. 13 - Prob. 45CECh. 13 - A researcher used stepwise regression to create...Ch. 13 - A sports enthusiast created an equation to predict...Ch. 13 - An expert witness in a case of alleged racial...Ch. 13 - Prob. 50CECh. 13 - Prob. 51CECh. 13 - Prob. 52CECh. 13 - Which statement is correct concerning one-factor...Ch. 13 - Prob. 2ERQCh. 13 - Prob. 3ERQCh. 13 - Prob. 4ERQCh. 13 - Prob. 5ERQCh. 13 - Prob. 6ERQCh. 13 - Prob. 7ERQCh. 13 - Prob. 8ERQCh. 13 - Prob. 9ERQCh. 13 - Prob. 10ERQCh. 13 - Prob. 11ERQCh. 13 - Prob. 12ERQCh. 13 - Prob. 13ERQCh. 13 - Prob. 14ERQCh. 13 - Prob. 15ERQ
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- 4arrow_forwardIf a random variable X has the moment generating function M,(t) = determine the %3D 2-t variance of X.arrow_forward1. A Random Variable X can take only two values, 1 and 2 .P(1) = 0.8 and P(2) = 0.2 Calculate the Expected value of X. 2. A Random Variable X can take only two values, 1 and 2. P(1) = 0.8 and P(2) = 0.2 Calculate the Variance of X 3. A lottery that pays off 100,000 pesos is made available for 5,000,000 tickets. Each ticket costs 50 pesos. Suppose the variable X gives the net winnings from playing the lottery. What is the expected gain for joining the lottery with only one ticket? 4. In a deck of cards which consists of cards numbered 1 to 5, a card is drawn randomly. A player wins 35 pesos if the number on the card is odd and loses 35 pesos if the number on the card is even. What is the expected value of his winnings?arrow_forward
- If the errors are homoscedastic and you use the heteroskedasticity-only formula for standard errors, the standard errors are wrong. True or False? Explain.arrow_forward1 Please answer all questionsarrow_forwardSuppose observations yt follow a linear trend + white noise stochastic process: Yt = c+ Bt + €t Ez ~ WN(0, o²) (a) Derive it’s unconditional mean. (b) Derive it's unconditional variance function. (c) Derive it's autocorrelation function. (d) Is yt covariance stationary ? Explain.arrow_forward
- fx(x)={12/11(1−x2) −1/2≤x≤1/2 0 otherwise Random variable Y = Y As it is defined as 2X + 0.2 Find the expected value and the variance of the random variable Y.arrow_forward(a) Suppose X and Y are independent random variables with standard deviations 3 and 2 respectively. Define Z = X − 2Y + 3. What is the standard deviation of Z? (b) Suppose X and Y are Poisson random variables. X has a mean of 1 and Y has a mean of 2. X and Y are correlated with CORR (X,Y) = 0.5. What is the variance of X + Y ? (c) refer to the table. What is the variance of the number of cards held by a person from this group?arrow_forward(d) Use a t-test to test if the relationship between years of experience and income is statistically significant at the 0.05 level of significance. State the null and alternative hypotheses. O Ho: B₁ ≥ 0 H₂: B₁< < 0 Ho: B₁ = 0 Ha: B₁ * 0 O Ho: B₁ * 0 Ha: B₁ = 0 о ново = 0 Ha: Bo # 0 Ho Bo # 0 Ha: Bo Find the value of the test statistic for the t-test. (Round your answer to three decimal places.) = = 0 Find the p-value. (Round your answer to four decimal places.) p-value What is your conclusion? O Reject Ho. We conclude that the relationship between years of experience and income is significant. O Do not reject Ho. We cannot conclude that the relationship between years of experience and income is significant. O Reject Ho. We cannot conclude that the relationship between years of experience and income is significant. O Do not reject Ho. We conclude that the relationship between years of experience and income is significant. (e) Calculate the coefficient of determination. (Round your…arrow_forward
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