EBK STATISTICS FOR MANAGEMENT AND ECONO
EBK STATISTICS FOR MANAGEMENT AND ECONO
10th Edition
ISBN: 9780100546462
Author: KELLER
Publisher: YUZU
Question
Book Icon
Chapter 17, Problem 54E

a:

To determine

Derive the regression equation.

a:

Expert Solution
Check Mark

Explanation of Solution

The ANOVA table output is obtained using the statistical software. The result is given below:

EBK STATISTICS FOR MANAGEMENT AND ECONO, Chapter 17, Problem 54E , additional homework tip  1

The general regression line can be derived as follows:Intercept is denoted by IC and the coefficient is denoted by CE

VariableDependent=IC+CEX1×X1+CEX2×X2+...+CEXn×Xn        (1)

Substitute the respective value in Equation (1) to derive the regression equation.

y^=164.01+0.14×X1+0.0313×X2

b:

To determine

Testing the hypothesis.

b:

Expert Solution
Check Mark

Explanation of Solution

The null hypothesis (H0) β1=0 and the alternative hypothesis (H1) is β10.

The calculated t value is 1.72 and the p value is 0.0974. Since the p value is significantly different from 0, the alternate hypothesis is not accepted.

c:

To determine

Testing the new hypothesis.

c:

Expert Solution
Check Mark

Explanation of Solution

The null hypothesis (H0) β2=0 and the alternative hypothesis (H1) is β20.

The calculated t value is 4.64 and the p value is 0.0001. Since the p value is nearly equal to 0, the alternate hypothesis is accepted.

d:

To determine

Standard error.

d:

Expert Solution
Check Mark

Explanation of Solution

The standard error is 63.08 and the R square value is 0.4572. This indicates the good fit of the model.

e

To determine

Normality requirement.

e

Expert Solution
Check Mark

Explanation of Solution

The distribution of the variable is obtained using the statistical software. The result is given below:

EBK STATISTICS FOR MANAGEMENT AND ECONO, Chapter 17, Problem 54E , additional homework tip  2

The required condition is that the variable should be distributed normally. Since the histogram is bell shaped, the error variable is distributed normally. Thus, the required condition is satisfied.

The variance of the error is obtained using the statistical software. The result is given below:

EBK STATISTICS FOR MANAGEMENT AND ECONO, Chapter 17, Problem 54E , additional homework tip  3

From Figure 2, it is known that the error variable is not constant.

f:

To determine

Calculate the upper limit and the lower limit.

f:

Expert Solution
Check Mark

Explanation of Solution

The upper limit and the lower limit areobtained using the statistical software. The result is given below:

EBK STATISTICS FOR MANAGEMENT AND ECONO, Chapter 17, Problem 54E , additional homework tip  4

The lower limit is 69.2 and the upper limit is 349.3.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
A linear programming computer package is needed. As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars). Year 1 2 3 4 5 6 Payment 170 195 220 265 295 440 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value = $1,000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity 1 $1,055 6.750 3 2 $1,000 5.125 4 Assume that interest is paid annually. The plan will be submitted to the judge and, if approved,…
On the 1st of April 2018, the South African National Treasury increase the value-added tax rate from 14% to 15%. This policy change had a wide-ranging impact on society. Discuss some of the benefits and drawbacks of making use of this type of tax to generate government revenue and what we may expect in terms of its impact on inflation and GDP growth within the economy.   Please use some of the economics graphs to explain some scenarios
Eskom is South Africa’s monopoly power producer which the majority of South Africans depend on. Suppose there is extensive deregulation in the power industry. What is the impact of this deregulation on the industry? Help me on discussing the new market structure as well as the impact on supply and demand.     Use the relevant diagrams.

Chapter 17 Solutions

EBK STATISTICS FOR MANAGEMENT AND ECONO

Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning