EconHM18 - Question #1 Take a look at the example starting...

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Question #1 Take a look at the example starting on page 82 (slide 8) of your course packet. (In the course packet example, the dependent variable is called "SCORE"; here, and in the excel file, it's called "MARK.") A statistics professor wanted to know whether time limits on quizzes affected the marks on the quiz. Accordingly, he took a random sample of economics statistics students and split them into five groups of 20 students each. All students took a quiz that involved simple manual calculations. Each group was given a different time limit. Group 1 was limited to 40 minutes; group 2, 45 minutes; group 3, 50 minutes; group 4, 55 minutes; and group 5, 60 minutes. The quizzes were marked (out of 40) and recorded in this file. Run a regression of SCORE on TIME and answer the following questions: ( Notice that if you just copy the answers from the course packet, mallard will tell you that some answers are not correct. You need to perform all the calculations in Excel to get the correct values. ) 1. The algebraic form of estimated equation of your model is SCORE = -2.2 + 0.55 TIME. 2. The value of the coefficient of determination is 0.743974422 . 3. Now, you want to check if the required assumption #1(Normality) is violated. After you run a regression, you create a histogram of the standardized residuals. From the residual analysis, we can conclude that the errors are tolerably normal . 4. Also, you want to check if the required assumption #2(Homoscedasticity) is violated. You place the residuals on the vertical axis and graph against the predicted values of y. From the above analysis, we can conclude that errors have heteroscedasticity . One way to deal with the problem encountered above, as has been addressed
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EconHM18 - Question #1 Take a look at the example starting...

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