n. Regression coefficients will be sensitive to specifications. Regression coefficients can change substantially when variables are added or dropped. o. Sometimes you can reduce multicollinearity by re-specifying the model, for instance, create a combination of multicollinear variables represents transforming the specification error. p. Inclusion of irrelevant variable(s) and error of measurement represents specification errors in a regression model.
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- The following fictitious table shows kryptonite price, in dollar per gram, t years after 2006. t= Years since 2006 0 1 2 3 4 5 6 7 8 9 10 K= Price 56 51 50 55 58 52 45 43 44 48 51 Make a quartic model of these data. Round the regression parameters to two decimal places.Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s pole vault height has fallen below the value predicted by the regression line in Example 2. This might have occurred because when the pole vault was a new event there was much room for improvement in vaulters’ performances, whereas now even the best training can produce only incremental advances. Let’s see whether concentrating on more recent results gives a better predictor of future records. (a) Use the data in Table 2 (page 176) to complete the table of winning pole vault heights shown in the margin. (Note that we are using x=0 to correspond to the year 1972, where this restricted data set begins.) (b) Find the regression line for the data in part ‚(a). (c) Plot the data and the regression line on the same axes. Does the regression line seem to provide a good model for the data? (d) What does the regression line predict as the winning pole vault height for the 2012 Olympics? Compare this predicted value to the actual 2012 winning height of 5.97 m, as described on page 177. Has this new regression line provided a better prediction than the line in Example 2?The following table shows the annual number of PhD graduates in a country in various fields. NaturalSciences Engineering SocialSciences Education 1990 70 10 70 30 1995 130 40 110 40 2000 330 130 280 120 2005 490 370 460 210 2010 590 550 830 520 2012 690 590 1,000 900 (a) With x = the number of social science doctorates and y = the number of education doctorates, use technology to obtain the regression equation. (Round coefficients to three significant digits.) y(x) = (b) Use technology to obtain the coefficient of correlation r. (Round your answer to three decimal places.) r =
- Consider the following two a.m. peak work trip generation models, estimated by household linear regression: T = 0.62 + 3.1 X1 + 1.4 X2 R2= 0.590 (2.3) (7.1) (5.9) T = 0.01 + 2.4 X1 + 1.2 Z1 + 4.0 Z2 R2= 0.598 (0.8) (4.2) (1.7) (3.1) X1 = number of workers in the household X2 = number of cars in the household, Z1 is a dummy variable which takes the value 1 if the household has one car, Z2 is a dummy variable which takes the value 1 if the household has two or more cars. Compare the two models and choose the best. If a zone has 1000 households, of which 50% have no car, 35% have one car, and the rest have exactly two cars, estimate the total number of trips generated by this zone. Use the preferred trip generation model and assume that each household has an average of two workersBased on the below table, compute the regression line that predicts Y from X. (relevant section) MX MY sX sY r 10 12 2.5 3.0 -0.62.state each of the five assumptions of the classical regression model (OLS) and give an intuitive explanation of the meaning and need for each of them
- Consider the following log-wage regression results for women (W) and men (M) where wages are predicted by schooling (S) and age (A). wW = 2.23 + 0.077Sw + 0.017Aw and wM = 2.33 + 0.0745SM + 0.026AM. Sample means for the variables by gender are: women average a logged wage of 3.90, 12.7 years of schooling, and 40.8 years-old; men average a logged wage of 4.53, 14.2 years of schooling, and 43.9 years-old. Decompose the raw difference in average logged wages using the Oaxaca-Blinder decomposition. Specifically, decompose the raw difference into the portion due to differences in schooling, differences in age, and the portion left unexplained, possibly due to gender discrimination.The following estimated regression equation is based on 30 observations. ŷ = 18.3 + 3.9x1 − 2.2x2 + 7.5x3 + 2.5x4 The values of SST and SSR are 1,805 and 1,762, respectively. a. Compute R2 = (to 3 decimals). b. Compute Ra2 = (to 3 decimals).Consider the following model:? = ?? + ?,known as the Classical Linear Regression Model (CLRM), where y is the dependent variable, X is the set of independent variables, ? is the vector of parameters to be estimated and ? is the error term. Present and discuss the R2 and the adjusted R2. Discuss pros and cons of each of the two statistics.
- The following table shows the annual number of PhD graduates in a country in various fields. NaturalSciences Engineering SocialSciences Education 1990 70 10 60 30 1995 130 40 120 40 2000 330 130 280 120 2005 490 370 460 210 2010 590 550 830 520 2012 690 590 1,000 900 (a)With x = the number of social science doctorates and y = the number of education doctorates, use technology to obtain the regression equation. (Round coefficients to three significant digits.) y(x) =The following table shows the annual number of PhD graduates in a country in various fields. NaturalSciences Engineering SocialSciences Education 1990 70 10 60 30 1995 130 40 120 50 2000 330 130 280 140 2005 490 370 460 210 2010 590 550 830 520 2012 690 590 1,000 900 (a) With x = the number of social science doctorates and y = the number of education doctorates, use technology to obtain the regression equation. (Round coefficients to three significant digits.) y(x) =Use the following linear regression equation to answer the questions. x1 = 2.0 + 3.6x2 – 7.8x3 + 2.1x4 a) Which variables are the explanatory variables? (Select all that apply.) x3 x1 x2 x4 (b) Which number is the constant term? List the coefficients with their corresponding explanatory variables. constant _____ x2 coefficient _____ x3 coefficient _____ x4 coefficient ______ (c) If x2 = 9, x3 = 3, and x4 = 6, what is the predicted value for x1? (Use 1 decimal place.)