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problem_set_3

# problem_set_3 - run a regression with Wage X 1 as the...

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M. Ryan Haley Spring 2008 Economic and Business Statistics Economics 210 Problem Set #3 1 Directions Use a computer ( i.e. , Excel or Minitab) to solve the following problems. It is, of course, important that you solve the problem correctly, but it is equally important that you correctly interpret the output. So, when the question asks for an interpre- tation of the results, be sure to do so. The necessary data sets are available on the course website. 2 Problems 1. Using the 0.02 level of significance, can we conclude that there is a difference between the proportion of houses with pools and the proportion of houses with garages? 2. Using baseball.xls , compute the sample correlation coefficient between Atten- dance and Wins. Test the null hypothesis that ρ = 0. Interpret your findings. 3. Using baseball.xls again, can we conclude at the 0.02 level of significance, that the Stolen and Errors variables have different variances? 4. Using wages.xls , run a regression with Wage (
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Unformatted text preview: , run a regression with Wage ( X 1) as the dependent variable and Experience ( X 9) as the independent variable. Report the computed values for the regression coeﬃcients, their standard errors, and the R 2 . Interpret your ﬁndings. 5. Using wages.xls again, suppose you were to run a regression with Wage ( X 1) as the dependent variable and Experience ( X 9) and Age ( X 11) as the independent variables. Explain why using both Experience and Age as independent variables (at the same time) may not be a sound way to proceed. 6. Using realestate.xls , run a regression with Price as the dependent variable and Size and Bath as the independent variables. Report all three regression coeﬃcients, and indicate which (if any) are statistically signiﬁcant at the 0.05 level. By how much can we expect the selling price of a home to increase if we add an additional bathroom? Interpret your ﬁndings. 1...
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