Statistics: The Art and Science of Learning from Data (4th Edition)
4th Edition
ISBN: 9780321997838
Author: Alan Agresti, Christine A. Franklin, Bernhard Klingenberg
Publisher: PEARSON
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Chapter 13, Problem 67CP
a.
To determine
Find the prediction equation that relates the predicted GDP to the explanatory variables.
b.
To determine
Interpret the coefficient of the explanatory variables.
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Students have asked these similar questions
One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey.
Preference
Male
Female
TOTAL
Prefers dogs
\[36\]
\[20\]
\[56\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
problem 1
Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal.
\[P\left(\text{prefers dogs}\right)=\]
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Preference
Male
Female
TOTAL
Prefers dogs
\[\blueD{36}\]
\[\blueD{20}\]
\[\blueE{56}\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.
Business discuss
You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below.
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model.
Interpret the…
Chapter 13 Solutions
Statistics: The Art and Science of Learning from Data (4th Edition)
Ch. 13.1 - Predicting weight For a study of female college...Ch. 13.1 - Prob. 2PBCh. 13.1 - Predicting college GPA For all students at Walden...Ch. 13.1 - Prob. 4PBCh. 13.1 - Does more education cause more crime? The FL Crime...Ch. 13.1 - Crime rate and income Refer to the previous...Ch. 13.1 - The economics of golf The earnings of a PGA Tour...Ch. 13.1 - Prob. 8PBCh. 13.1 - Controlling can have no effect Suppose that the...Ch. 13.1 - House selling prices Using software with the House...
Ch. 13.1 - Used cars The following data (also available from...Ch. 13.2 - Predicting sports attendance Keeneland Racetrack...Ch. 13.2 - Predicting weight Lets use multiple regression to...Ch. 13.2 - Prob. 14PBCh. 13.2 - Price of used cars For the 19 used cars listed in...Ch. 13.2 - Prob. 16PBCh. 13.2 - Softball data For the Softball data set on the...Ch. 13.2 - Slopes, correlations, and units In Example 2 on y...Ch. 13.2 - Predicting college GPA Using software with the...Ch. 13.3 - Predicting GPA For the 59 observations in the...Ch. 13.3 - Study time help GPA? Refer to the previous...Ch. 13.3 - Variability in college GPA Refer to the previous...Ch. 13.3 - Does leg press help predict body strength? Chapter...Ch. 13.3 - Prob. 24PBCh. 13.3 - Interpret strength variability Refer to the...Ch. 13.3 - Any predictive power? Refer to the previous three...Ch. 13.3 - Predicting pizza revenue Aunt Ermas Pizza...Ch. 13.3 - Prob. 28PBCh. 13.3 - Mental health again Refer to the previous...Ch. 13.3 - Prob. 30PBCh. 13.3 - House prices Use software to do further analyses...Ch. 13.4 - Body weight residuals Examples 47 used multiple...Ch. 13.4 - Strength residuals In Chapter 12, we analyzed...Ch. 13.4 - Prob. 34PBCh. 13.4 - Nonlinear effects of age Suppose you fit a...Ch. 13.4 - Prob. 36PBCh. 13.4 - Why inspect residuals? When we use multiple...Ch. 13.4 - College athletes The College Athletes data set on...Ch. 13.4 - House prices Use software with the House Selling...Ch. 13.4 - Prob. 40PBCh. 13.5 - U.S. and foreign used cars Refer to the used car...Ch. 13.5 - Prob. 42PBCh. 13.5 - Predict using house size and condition For the...Ch. 13.5 - Quality and productivity The table shows data from...Ch. 13.5 - Predicting hamburger sales A chain restaurant that...Ch. 13.5 - Prob. 46PBCh. 13.5 - House size and garage interact? Refer to the...Ch. 13.5 - Prob. 48PBCh. 13.5 - Comparing sales You own a gift shop that has a...Ch. 13.6 - Prob. 50PBCh. 13.6 - Prob. 51PBCh. 13.6 - Prob. 52PBCh. 13.6 - Prob. 53PBCh. 13.6 - Prob. 54PBCh. 13.6 - Prob. 55PBCh. 13.6 - Prob. 56PBCh. 13.6 - Prob. 57PBCh. 13.6 - Prob. 58PBCh. 13.6 - Prob. 59PBCh. 13 - House prices This chapter has considered many...Ch. 13 - Prob. 61CPCh. 13 - Prob. 62CPCh. 13 - Prob. 63CPCh. 13 - Prob. 64CPCh. 13 - Prob. 65CPCh. 13 - Prob. 66CPCh. 13 - Prob. 67CPCh. 13 - Prob. 68CPCh. 13 - Prob. 69CPCh. 13 - AIDS and AZT In a study (reported in the New York...Ch. 13 - Factors affecting first home purchase The table...Ch. 13 - Unemployment and GDP Refer to Exercise 13.67. When...Ch. 13 - Prob. 75CPCh. 13 - Prob. 76CPCh. 13 - Prob. 77CPCh. 13 - Prob. 78CPCh. 13 - Prob. 79CPCh. 13 - True or false: Slopes For data on y = college GPA,...Ch. 13 - Prob. 81CPCh. 13 - Lurking variable Give an example of three...Ch. 13 - Prob. 83CPCh. 13 - Prob. 84CPCh. 13 - Prob. 85CPCh. 13 - Logistic versus linear For binary response...Ch. 13 - Prob. 87CPCh. 13 - Prob. 88CPCh. 13 - Prob. 89CPCh. 13 - Prob. 90CPCh. 13 - Prob. 91CPCh. 13 - Prob. 92CPCh. 13 - Prob. 93CP
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- Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots. Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship. Value of correlation coefficient: Direction of the relationship (positive, negative, or zero relationship): Strength of the relationship (strong/moderate/weak): Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forwardProblem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forward
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