1. Which of the following are used to test for the statistical significance or explanatory power of an individual variable?

A) t-statistic

B) p-value

C) t-statistic and p-value

D) R-squared

E) F-statistic

F) R-squared and F-statistic

2. Which of the following are used to test the statistical significance and explanatory power of all the independent variables together (i.e., the explanatory power of the model)?

A) t-statistic

B) p-value

C) t-stastistic and p-value

D) R-squared

E) F-statistic

F) R-squared and F-statistic

3.Which should be used to determine if an individual variable should be added to the regression model?

A) Economic, business or physical theory.

B) The t-statistic and p-value of the variable coefficient.

C) The correlation with other variables included in the model.

D) All of the above.

4.Suppose you have a regression model that depicts the relationship between costs in dollars (C) and the machine hours(H) such that log(C) = 10 + 2(logH). Which of the following is the correct interpretation of the machine hours coefficient?

A) A 1 hour increase in machine use will increase costs by $2.

B) A 1 increase in costs will occur if there is a 2 hour increase in machine use.

C) A 1% increase in machine hours will increase costs 2%.

D) A 1% increase in costs will result from a 2% increase in machine hours.

5.Which of the following is NOT likely to occur when multicollinearity exists in a model?

A) Inflated Adjusted R-squared

B) High correlation between a pair or pairs of variables.

C) A variance inflation factor (VIF) > 5.

D) Theoretically important variables having coefficients that are statistically insignificant.

For this question, none of the options is right. (All the options are true in a model with multicollinearity)

8.2.1: An analyst is evaluating the demand for building and construction materials relative to the cost of borrowing or the mortgage rate in Los Angeles and San Francisco. He believes that the following model is appropriate: Y = 10 + 5X1 + 8X2, where Y is demand in $100 per capita; X1 is mortgage rate in %, and X2 equals 1 if SF, 0 if LA.

6.Given the information in 8.2.1, each additional increase of 1% in the mortgage rate will lead to an estimated average _________________ in demand for building materials, holding constant the effect of city.

A) Increase of $500 per capita.

B) Decrease of $500 per capita.

C) Increase of $5 per capita.

D) Decrease of $5 per capita.

7.Using the model in 8.2.1, the interpretation of the coefficient for X2 is: Holding constant the effect of mortgage rates,

A) Demand for building materials is $800 more per capita in SF than in LA.

B) Demand for building materials is $800 more per capita in LA than SF.

C) Demand for building materials is $8 more per capita in LA than in SF.

D) Demand for building materials is $8 more per capita in SF than in LA.

8.2.2: Advanced Technology Corporation (ATC) manufactures a home computer system and has hired a market research team to analyze the potential demand for this product using historical data on sales of similar products in 66 regions of the country in conjunction with information from consumer surveys. The research firm estimated the following demand function: Q = -36,000 – 10P + 2Px + 300I + 24A – 0.01Asquared, where Q=annual demand in units, P=price of ATC computer ($), Px=price of ATC major competitor computer ($), I = average family disposable income ($100), and A = advertising by ATC ($100).

8.Using situation 8.2.2, the correct interpretation of the coefficient for Px (i.e., +2) is:

A) An increase of computer sales of one unit will occur if there is a $2 increase in the price of the competitor’s computer holding constant P, I, and A.

B) An increase of computer sales of one unit will occur if there is a $200 increase in the price of the competitor computer, holding constant P, I, and A.

C) A $1 increase in the price of the competitor’s computer will increase ATC computer sales by 2 units, holding constant P, I, and A.

D) A $1 increase in the price of the competitor’s computer will increase ATC computer sales by 200 units, holding constant P, I and A.

9.Suppose you review the information in situation 8.2.2 and plan to test the explanatory power of: 1. the overall model and 2. a one-tail test of the individual coefficients, both at the .05 level of significance, then what critical values would you use for your tests? The first answer refers to tests for the model; the second answer refers to the test for the individual variable coefficient.

A) F=2.37 and t=1.671

B) t=1.671 and F=2.37.

C) F=2.25 and t=1.671

D) t=2.00 and F=2.37.

For this question, none of the options is right. (The correct answer is F = 2.52 and t = 1.671)

10.Using situation 8.2.2, what would happen to computer sales if ATC increased the advertising budget by $1000 (check units of measurement before you start to answer)?

A) Sales would increase by approximately 240 units.

B) Sales would increase by approximately 241 units.

C) Sales would increase by approximately 24,000 units.

D) Sales would increase by approximately 14,000 units.

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.