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Homework 1

# Homework 1 - Homework 1 STAT 331 Fall 2008(5 points Prove...

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Homework 1 STAT 331 Fall 2008 1. (5 points) Prove that covariance between residuals and predictor variable is 0. 2. (5 points) Show that for SLR squared t-statistic for a slope is equal to F-statistic. 3. (40 points) DESCRIPTIVE ABSTRACT: The datafile contains 11 years of quarterly sales for four kinds of retail establishments, along with non-agricultural employment and wage and salary disbursements. The current task is to develop a model for predicting general merchandise dealer sales (GMER) based on national income wage and salary disbursements (WASA). These data are published monthly in the statistical section of the Survey of Current Business. VARIABLE DESCRIPTIONS: 1. TIME: Quarter, from 1st quarter 1979 to 4th quarter 1989 2. WASA: National income wage and salary disbursements (\$ billions) 3. EMPL: Employees on payrolls of non-agricultural establishments (thousands) 4. BLDG: Building material dealer sales (\$ millions) 5. AUTO: Automotive dealer sales (\$ millions) 6. FURN: Furniture and home furnishings dealer sales (\$ millions) 7.

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