Using the textbook example of 420 California school districts and the regression of test scores on the student-teacher ratio, you find that the standard error on the slope coefficient is 0.51 when using the heteroskedasticity-robust formula, while itis 0.48 when employing the homoskedasticity-only formula.When calculating the t-statistic, the recommended procedure is to:O A. use the heteroskedasticity-robust formula.O B.first test for homoskedasticity of the errors and then make a decision.O C.use the homoskedasticity-only formula because the t-statistic becomes larger.O D. make a decision depending on how much different the estimate of the slope is under the two procedures.

Given problem Given that Using the textbook example of 420 California school districts and the…

Answered: Using the textbook example of 420…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.1: Measures Of Center

Problem 9PPS

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Consider the following sample regression equation yˆ = 150 − 20x, where y is the demand for Product A (in 1,000s) and x is the price of the product (in $). If the price of Product A is $5, then we expect demand to be ________.
Use the following linear regression equation to answer the questions. x1 = 1.7 + 3.9x2 – 8.5x3 + 2.2x4 Suppose x2 increased by 2 units. What would be the expected change in x1? Suppose x2 increased by 4 units. What would be the expected change in x1? (e) Suppose that n = 18 data points were used to construct the given regression equation and that the standard error for the coefficient of x2 is 0.454. Construct a 99% confidence interval for the coefficient of x2. (Use 2 decimal places.) lower limit ? upper limit ? (f) Using the information of part (e) and level of significance 10%, test the claim that the coefficient of x2 is different from zero. (Use 2 decimal places.) t ? t critical ± ?
Consider the following sample regression equation yˆ = 150 − 20x, where y is the demand for Product A (in 1,000s) and x is the price of the product (in $). The slope coefficient indicates that if _____
You have obtained a sub-sample of 1744 individuals from the Current Population Survey (CPS) and are interested in the relationship between weekly earnings and age. The regression, using heteroskedasticity-robust standard errors, yielded the following result: = 239.16 + 3.75× Age, R2 = 0.15, SER = 287.21., where Earn and Age are measured in dollars and years respectively. Interpret the intercept? Interpret the slope coefficient b) Is the effect of age on earnings large? The average age in this sample is 37.5 years. What is annual income in the sample? (e) Interpret the measures of fit.
Researchers interested in lead exposure due to car exhaust sampled the blood of 52 police officers subjected to constant inhalation of automobile exhaust fumes while working traffic enforcement in a primarily urban environment. The blood samples of these officers had an average lead concentration of 124.32 µg/l and a SD of 37.74 µg/l; a previous study of individuals from a nearby suburb, with no history of exposure, found an average blood level concentration of 35 µg/l. Test the hypothesis that the downtown police officers have a higher lead exposure than the group in the previous study. Interpret your results in context. Based on your preceding result, without performing a calculation, would a 99% confidence interval for the average blood concentration level of police officers contain 35 µg/l? Based on your preceding result, without performing a calculation, would a 99% confidence interval for this difference contain 0? Explain why or why not.
2. Given the following sets of information, find the linear least squares regression and the correlation coefficient.
A researcher conducts an experiment comparing two methods of teaching young children to read. An older method is compared with a newer one, and the mean performance of the new method was found to be greater than that of the older method The results are reported as follows: t(120) = 2.10, p = .04, (d =.34). a. Are the results statistically significant?
Use the following information from a multiple regression analysis. n=15 b1=2 b2=6 Sb1=1.4 Sb2=0.5 a. Which variable has the largest slope, in units of a t statistic? b. Construct a 90% confidence interval estimate of the population slope, β1. c. At the 0.10 level of significance, determine whether each independent variable makes a significant contribution to the regression model. On the basis of these results, indicate the independent variables to include in this model.
For each of the following, explain what is wrong and why. a)In simple linear regression, the null hypothesis of the ANOVA F test is H0: β0 = 0. b)In an ANOVA table, the mean squares add. In other words, MST = MSM + MSE. c)The smaller the P-value for the ANOVA F test, the greater the explanatory power of the model. d)The total degrees of freedom in an ANOVA table are equal to the number of observations n.
If a sample of 25 pairs of data yields a correlation coefficient, r, of 0.390 and the scatterplot displays a linear trend, can you use the regression equation to make predictions, assuming your x-values are within the domain of the data set? Choose your answer from the multiple choice answers below A.) Yes, because rcrit = 0.396 and the regression coefficient, r, is less than this value. B.) Yes, because rcrit = 0.381 and the regression coefficient, r, is greater than this value. C.) No, because rcrit = 0.381 and the regression coefficient, r, is greater than this value. D.) No, because rcrit = 0.396 and the regression coefficient, r, is less than this value.
Based on the EViews results above, answer the following questions.a. What is your comments on the diagnostic tests of the model? i. Autocorrelation test ii. Heteroscedasticity test iii. Normality

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