25. The following model was fitted to data on 32 insurance companies:9 = 7.62 - 0.16xi + 1.23x2 R = 0.37(0.008) (0.496)where9 = price-earnings ratioXI = size of insurance company assets, in billions of dollarsx2 = dummy variable taking the value I for regional companies and 0 for national companiesThe numbers in parentheses under the coefficients are the estimated coefficient standard errors.a. Interpret the estimated coefficient on the dummy variable.b. Test against a two-sided alternative. the null hypothesis that the true coefficient on thedummy variable is 0.c. Test, at the 5% level, the null hypothesis B, = B2 = 0, and interpret your result.

Answered: Image /qna-images/answer/5a80625e-f44e-4535-bd19-92761b9691bf.jpg

Answered: 25. The following model was fitted to…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 2EQ: 2. Suppose that in Example 2.27, 400 units of food A, 500 units of B, and 600 units of C are placed...

See similar textbooks

Similar questions

2. Suppose that in Example 2.27, 400 units of food A, 500 units of B, and 600 units of C are placed in the test tube each day and the data on daily food consumption by the bacteria (in units per day) are as shown in Table 2.7. How many bacteria of each strain can coexist in the test tube and consume all of the food? Table 2.7 Bacteria Strain I Bacteria Strain II Bacteria Strain III Food A 1 2 0 Food B 2 1 3 Food C 1 1 1
8)Suppose that Y is normal and we have three explanatory unknowns which are also normal, and we have an independent random sample of 11 members of the population, where for each member, the value of Y as well as the values of the three explanatory unknowns were observed. The data is entered into a computer using linear regression software and the output summary tells us that R-square is 0.86, the linear model coefficient of the first explanatory unknown is 7 with standard error estimate 2.5, the coefficient for the second explanatory unknown is 11 with standard error 2, and the coefficient for the third explanatory unknown is 15 with standard error 4. The regression intercept is reported as 28. The sum of squares in regression (SSR) is reported as 86000 and the sum of squared errors (SSE) is 14000. From this information, what is MSE/MST? .5000 NONE OF THE OTHERS .2000 .3000 .4000
9)Suppose that Y is normal and we have three explanatory unknowns which are also normal, and we have an independent random sample of 11 members of the population, where for each member, the value of Y as well as the values of the three explanatory unknowns were observed. The data is entered into a computer using linear regression software and the output summary tells us that R-square is 0.79, the linear model coefficient of the first explanatory unknown is 7 with standard error estimate 2.5, the coefficient for the second explanatory unknown is 11 with standard error 2, and the coefficient for the third explanatory unknown is 15 with standard error 4. The regression intercept is reported as 28. The sum of squares in regression (SSR) is reported as 79000 and the sum of squared errors (SSE) is 21000. From this information, what is the adjusted R-square? .8 .7 NONE OF THE OTHERS .6 .5
6) The line of best fit through a set of data isy=36.704+0.985xy=36.704+0.985xAccording to this equation, what is the predicted value of the dependent variable when the independent variable has value 30?y = Round to 1 decimal place.
The table below shows the number of state-registered automatic weapons and the murder rate for several Northwestern states. xx 11.7 8.4 7 3.8 2.7 2.3 2.5 0.3 yy 14.2 11.4 10.2 7.4 6.3 6.1 6 4 xx = thousands of automatic weaponsyy = murders per 100,000 residentsThis data can be modeled by the equation ˆy=0.89x+3.89.y^=0.89x+3.89. Use this equation to answer the following;Note: Verify this equation using your calculator.A) How many murders per 100,000 residents can be expected in a state with 2.8 thousand automatic weapons?Answer = Round to 3 decimal places.B) How many murders per 100,000 residents can be expected in a state with 8.5 thousand automatic weapons?Answer = Round to 3 decimal places.
17) Suppose that Y is normal and we have three explanatory unknowns which are also normal, and we have an independent random sample of 41 members of the population, where for each member, the value of Y as well as the values of the three explanatory unknowns were observed. The data is entered into a computer using linear regression software and the output summary tells us that R-square is 0.9, the linear model coefficient of the first explanatory unknown is 7 with standard error estimate 2.5, the coefficient for the second explanatory unknown is 11 with standard error 2, and the coefficient for the third explanatory unknown is 15 with standard error 4. The regression intercept is reported as 28. The sum of squares in regression (SSR) is reported as 90000 and the sum of squared errors (SSE) is 10000. From this information, what is the number of degrees of freedom for the t-distribution used to compute critical values for hypothesis tests and confidence intervals for the individual…
Suppose IQ scores were obtained from randomly selected twins. For 20 such pairs of people, the linear correlation coefficient is 0.930 and the equation of the regression line is y=−10.69+1.11x, where x represents the IQ score of the twin born first. Also, the 20 x values have a mean of 98.28 and the 20 y values have a mean of 98.5. What is the best predicted IQ of the twin born second, given that the twin born first has an IQ of 92? Use a significance level of 0.05.LOADING... Click the icon to view the critical values of the Pearson correlation coefficient r.Question content area bottomPart 1The best predicted IQ of the twin born second is enter your response here.(Round to two decimal places as needed.)
The relationship between sleep hours and overall happiness level on the next day was estimated as below in a linear format. (Happiness level is measured through a five-point scale: 1 = Extremely unhappy, 5 = Extremely happy) Overall happiness level = 0.27 * Sleep hours + 2.34 (The p-value for the coefficient of Sleep hours is 0.02.) Based on this equation, what is the expected happiness level of a person on a certain day, when he slept 7 hours the day before?
Suppose IQ scores were obtained from randomly selected twins. For 20 such pairs of people, the linear correlation coefficient is 0.892 and the equation of the regression line is Modifying Above y= -1.91 + 1.01 x, where x represents the IQ score of the twin born the second. Also, the 20 x values have a mean of 100.07 and the 20 y values have a mean of 98.8 What is the best predicted IQ of the twin born first twin born first,given that the twin born second twin born secondhas an IQ of 96?Use a significance level of 0.05. Click the icon to view the critical values of the Pearson correlation coefficient r. Critical Values of the Pearson Correlation Coefficient r NOTE: To test H0: rhoρequals=0 against H1: rhoρnot equals≠0, reject H0 if the absolute value of r is greater than the critical value in the table. n a=0.05 a=0.01 4 0.950 0.990 5 0.878 0.959 6 0.811 0.917 7 0.754 0.875 8 0.707 0.834 9 0.666 0.798 10…
Suppose that a least squares regression line equation is ˆy = 1.65 − 2.20x and the actual y value corresponding to x = 10 is −19, what is the residual value corresponding to y = −19?
An aircraft company wanted to predict the number of worker-hours necessary to finish the design of a new plane. Relevant explanatory variables were thought to be the plane’s top speed, its weight, and the number of parts it had in common with other models built by the company. A sample of 27 of the company’s planes was taken, and the following model was estimated:y = β0 + β1x1 + β2x2 + β3x3 + εwherey = design effort, in millions of worker-hoursx1 = plane’s top speed, in miles per hourx2 = plane’s weight, in tonsx3 = percentage number of parts in common with other modelsThe estimated regression coefficients were as follows:b1 = 0.661 b2 = 0.065 b3 = -0.018and the estimated intercept was 2.0.Predict design effort for a plane with a top speed of Mach 1.0, weighing 7 tons, and having 50% of itsparts in common with other models.
For a population of highly creative individuals with a creativity score µ = 60 and σ = 10, determine the percentage(s) associated with the particular z – score(s). What percentage of highly creative individuals have a creativity score below a z – score of + 1? What percentage of highly creative individuals have a creativity score below a z – score of + 2? What percentage of highly creative individuals have a creativity score below a z – score of + 1? What percentage of highly creative individuals have a creativity score below a z- score of – 1? What percentage of highly creative individuals have a creativity score below a z – score of – 2? What percentage of highly creative individuals have a creativity score above a z – score of – 2? What percentage of highly creative individuals have a creativity score above a z – score of – 1?

SEE MORE QUESTIONS

Recommended textbooks for you

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS