ProblemSet6 Answers - Professor Mumford Econ 360 - Fall 2010

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Professor Mumford Econ 360 - Fall 2010 mumford@purdue.edu Problem Set 6 Answers Multiple Choice Questions (16 points) 1. (4 points) What is the t-statistic for the ACT coefficient, assuming a null hypothesis that ACT has no effect on GPA . (a) 0.2 (b) 0.5 (c) 2 (d) 5 2. (4 points) What is the interpretation of the P-value for the study coefficient. (a) If the null hypothesis that the coefficient for study = 0 . 20 were true, the probability of observing an estimate as extreme or more extreme than we did is 0.05. (b) If studying has no effect on GPA in the population, the probability of observing an estimate as extreme or more extreme than 0.2 is 0.05. (c) The probability of observing an estimate as extreme or more extreme than we did is 0.05 (d) Under the null hypothesis, the P-value is the probability of obtaining the parameter estimate 0.20. 3. (4 points) What is the Total Sum of Squares (SST) for the model. Note that the sum of the squared residuals (SSR) is given above. (a) 31.5 (b) 35 (c) 38.9 (d) 350 4. (4 points) Which of the variables is more important in explaining GPA , study or ACT ? Why? (a) study because the estimated beta coefficient is larger (b) ACT because the estimated beta coefficient is smaller (c) they are equally important because the P-values are identical (d) there is no way to determine which is more important from the regression output. 1 True/False (12 points) Please write the entire word. No explanations are required. 5. FALSE Consider the estimated model y = + 1 x + 2 x 2 . The estimated change in y caused by a change in x is given by: y parenleftBig 1 + 2 2 x parenrightBig x . 6. TRUE R-squared can never fall when a new independent variable is added to a regression equation....
View Full Document

This note was uploaded on 02/06/2012 for the course ECON 360 taught by Professor Na during the Spring '10 term at Purdue University-West Lafayette.

Page1 / 5

ProblemSet6 Answers - Professor Mumford Econ 360 - Fall 2010

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online