Prepare answers to the following assignments from the e-text, Applied Statistics in Business and Economics, by Doane and Seward:
Chapter 12
Chapter Review #1
Chapter Exercises 12.48 and 12.50
Chapter 13
Chapter Exercises 13.30 and 13.32
Chapter 14
Chapter Exercise 14.16
Chapter 12
Chapter Review #1
List two limitations of bivariate regression.
Often simplistic (multiple relationships usually exist.
Biased estimates, even if relevant predictors are omitted.
Why is estimating a multiple regression model just as easy as bivariate regression?
Because a computer does all the calculations so there is no extra computational burden.
Chapter Exercises:
12.48
In the following regression, X = weekly pay, Y = income tax withheld, and n = 35 McDonald's employees. (a) Write the fitted regression equation. (b) State the degrees of freedom for a two-tailed test for zero slope, and use Appendix D to find the critical value at ñ = .05. (c) What is your conclusion about the slope? (d) Interpret the 95 percent confidence limits for the slope. (e) Verify that F = t2 for the slope. (f) In your own words, describe the fit of this regression.
R2 0.202
Std. Error 6.816
n 35
ANOVA table
Source SS df MS F p-value
Regression 387.6959 1 387.6959 8.35 .0068
Residual 1,533.0614 33 46.4564
Total 1,920.7573 34
Regression output confidence interval
variables coefficients std. Error t (df = 33) p-value 95% lower 95% upper
Intercept 30.7963 6.4078 4.806 .0000 17.7595 43.8331
Slope 0.0343 0.0119 2.889 .0068 0.0101 0.0584
(a) Write the fitted regression equation.
y = 0.0343x
+ 30.7963
(b) State the degrees of freedom for a two-tailed test for zero slope, and use Appendix D to find the critical value at ñ = .05.
Dof = 35 - 1 = 34, critical value of t corresponding to 34 dof at (...