Statistics for Business and Economics (13th Edition)
13th Edition
ISBN: 9780134506593
Author: James T. McClave, P. George Benson, Terry Sincich
Publisher: PEARSON
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Textbook Question
Chapter 14.9, Problem 14.54ACI
Mortgage interest rates. Refer to the data on annual mortgage interest rate (Yt), Exercise 14.41 (p. 14-37). You fit the simple linear regression model, E (Yt) =β0 + β1t, to the data for the years 1990-2015 (t = 0, 1, 2, ... , 25).
a. Find and plot the regression residuals against I. Does the plot suggest the presence of autocorrelation? Explain.
b. Conduct the Durbin-Watson test (at α = .05 ) to test formally for the presence of positively autocorrelated regression errors.
c. Comment on the validity of the inference concerning model adequacy in light of the result of part b.
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The data shown below are the initial weights and gains in weight (in grams) of female rats on a high protein diet from 24 to 84 days of age. The point of interest in these data is whether the gain in weight is related to (dependent on) the initial weight. If so, then feeding experiments on female rats can be made more precise by adjusting for differences in initial weights of the rats. Statistically test this with a regression analysis.
Rat Number
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1
50
128
2
64
159
3
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158
4
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5
74
133
6
60
112
7
69
96
8
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56
132
10
48
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11
57
107
12
59
106
13
46
82
14
45
103
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65
104
I used excel's regression took pak and got the following:
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.489416452
R Square
0.239528464
Adjusted R Square
0.181030653
Standard Error
8.869929833
Observations
15…
A sample consists of 500 houses sold in Karachi between Jamuary 2020 and December 2020. The
multiple linear regression analysis is carried out to predict the house prices for investment in
residential properties in Karachi, Pakistan. The output below is produced using SPSS. (300 words)
Table: Coefficients
Model
Unstandardized
Coefficients
VIF
Constant
14.208
5.736
Age of house
-0.299
-2.322
1.58
Square footage of the house
0.364
2.931
1.71
Income of families in the area
p.004
0.392
1.01
Transportation time to major markets
-0.337
-2.619
1.90
R? = 0.67; DW = 2.08
Dependent Variable: House price (Pakistani rupees in Million)
a) You are required to write the multiple regression equation.
b) How would you interpret the above Output' of a regression analysis performed in SPSS?
c) From the above results, what can you say about the nature of autocorrelation?
d) Is there multicollinearity in regression? How do you know?
Calculate two lines of regression and calculate a linear regression equation to model the data given below:
years (1980,1985,1990,1995,2000)
Enrolment ( 21,25,29,39,47)
Chapter 14 Solutions
Statistics for Business and Economics (13th Edition)
Ch. 14.1 - Explain in words how to construct a simple index.Ch. 14.1 - Explain in words how to calculate the following...Ch. 14.1 - Explain in words the difference between Laspeyres...Ch. 14.1 - The table below gives the prices for three...Ch. 14.1 - Refer to Exercise 14.4. The next table gives the...Ch. 14.1 - Annual median family income. The table below lists...Ch. 14.1 - Annual U.S. craft beer production. While overall...Ch. 14.1 - Quarterly single-family housing starts. The...Ch. 14.1 - Spot price of natural gas. The table shown in the...Ch. 14.1 - Employment in farm and nonfarm categories....
Ch. 14.1 - GOP personal consumption expenditures. The gross...Ch. 14.1 - GDP personal consumption expenditures (contd)....Ch. 14.1 - Weekly earnings for workers. The table in the next...Ch. 14.1 - Production and price of metals. The level or price...Ch. 14.2 - Describe the effect of selecting an exponential...Ch. 14.2 - A monthly time series is shown in the table to the...Ch. 14.2 - Annual U.S. craft beer production. Refer to the...Ch. 14.2 - Foreign fish production. Overfishing and pollution...Ch. 14.2 - Yearly price of gold. The price of gold is used by...Ch. 14.2 - Personal consumption in transportation. There has...Ch. 14.2 - OPEC crude oil imports. The data in the table...Ch. 14.2 - SP 500 Stock Index. Standard Poors 500 Composite...Ch. 14.5 - How does the choice of the smoothing constant w...Ch. 14.5 - Refer to Exercise 14.4 (p. 14-9). The table with...Ch. 14.5 - Annual U.S. craft beer production. Refer to...Ch. 14.5 - Quarterly single-family housing starts. Refer to...Ch. 14.5 - Consumer Price Index. The CPI measures the...Ch. 14.5 - OPEC crude oil imports. Refer to the annual OPEC...Ch. 14.5 - SP 500 Stock Index. Refer to the quarterly...Ch. 14.5 - SP 500 Stock Index (contd). Refer to Exercise...Ch. 14.5 - Monthly gold prices. The fluctuation of gold...Ch. 14.6 - Annual U.S. craft beer production. Refer to the...Ch. 14.6 - Annual U.S. craft beer production (contd). Refer...Ch. 14.6 - SP 500 Stock Index. Refer to your exponential...Ch. 14.6 - SP 500 Stock Index (contd). Refer to your Holt...Ch. 14.6 - Monthly gold prices. Refer to the monthly gold...Ch. 14.6 - US school enrollments. The next table reports...Ch. 14.8 - The annual price of a finished product (in cents...Ch. 14.8 - Retail sales in Quarters 14 over a 10-year period...Ch. 14.8 - What advantage do regression forecasts have over...Ch. 14.8 - Mortgage interest rates. The level at which...Ch. 14.8 - Price of natural gas. Refer to Exercise 14.9 (p....Ch. 14.8 - A gasoline tax on carbon emissions. In an effort...Ch. 14.8 - Predicting presidential elections. Researchers at...Ch. 14.8 - Life insurance policies in force. The table below...Ch. 14.8 - Graphing calculator sales. The next table presents...Ch. 14.8 - Prob. 14.47ACICh. 14.9 - Define autocorrelation. Explain why it is...Ch. 14.9 - For each case, indicate the decision regarding the...Ch. 14.9 - What do the following Durbin-Watson statistics...Ch. 14.9 - Company donations to charity. Refer to the Journal...Ch. 14.9 - Forecasting monthly car and truck sales. Forecasts...Ch. 14.9 - Predicting presidential elections. Refer to the...Ch. 14.9 - Mortgage interest rates. Refer to the data on...Ch. 14.9 - Price of natural gas. Refer to the annual data on...Ch. 14.9 - Life insurance policies in force. Refer to the...Ch. 14.9 - Modeling the deposit share of a retail bank....Ch. 14 - Insured Social Security workers. Workers insured...Ch. 14 - Insured Social Security workers (contd). Refer to...Ch. 14 - Retail prices of food items. In 1990, the average...Ch. 14 - Demand for emergency room services. With the...Ch. 14 - Mortgage interest rates. Refer to the annual...Ch. 14 - Price of Abbott Labs stock. The yearly closing...Ch. 14 - Price o f Abbott Labs stock (contd). Refer to...Ch. 14 - Prob. 14.65ACICh. 14 - Prob. 14.66ACICh. 14 - Quarterly GOP values (contd). Refer to Exercise...Ch. 14 - Prob. 14.68ACICh. 14 - Prob. 14.69ACICh. 14 - Prob. 14.70ACICh. 14 - IBM stock prices. Refer to Example 14.1 (p. 14-5)...Ch. 14 - Prob. 14.72ACI
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