1 Practice Solns

1 Practice Solns - Solutions to BUAD 310 In-Class Practice...

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- 1 - Solutions to BUAD 310 In-Class Practice 11/1/10 1. Regression Analysis: pagecost versus circ The regression equation is pagecost = 21612 + 4.9268 circ Predictor Coef SE Coef T P Constant 21612 2568 8.42 0.000 circ 4.9268 0.5342 9.22 0.000 S = 13757.0 R-Sq = 64.9% Analysis of Variance Source DF SS MS F P Regression 1 16098031920 16098031920 85.06 0.000 Residual Error 46 8705772362 189255921 Total 47 24803804282 Predicted Values for New Observations New Obs Fit SE Fit 95% CI 95% PI 1 46246 2243 (41731, 50760) (18189, 74303) Values of Predictors for New Observations New Obs circ 1 5000 Questions: 1. What is the least-squares regression equation to predict Pagecost from Circulation? pagecost = 21612 + 4.9268 circ 2. Is Circulation a statistically useful variable in predicting Pagecost? Justify your answer. Test H0: β1=0 vs H a : β1≠0 p-value =0.000. Reject at 5% level. So at 5% level, Circulation is a statistically useful variable in predicting Pagecost 3. Is it likely that the regression line goes through the origin? Test H0: β0=0 vs H a: β0≠0 p-value =0.000. Reject at 5% level.
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- 2 - So it is not likely that the regression line goes through the origin. 4. What percent of variation in Pagecost can be explained by Circulation? R-Sq = 64.9% 5. Is it possible that the intercept could be 20,000? Test H0: β0= 20,000 vs Ha : β0≠ 20,000 t=(21612-20000)/ 2568=0.6277, df=46 p-value = 2P(T>0.6277)>0.1 At 10% level, it is possible that the intercept is 20,000 6. What is the estimate of the standard deviation of the error term in the simple linear regression model? S = 13757.0
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1 Practice Solns - Solutions to BUAD 310 In-Class Practice...

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