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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 tstatistic 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 Pvalue 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 Pvalue 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 Pvalues 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 Rsquared can never fall when a new independent variable is added to a regression equation....
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This note was uploaded on 02/06/2012 for the course ECON 360 taught by Professor Na during the Spring '10 term at Purdue UniversityWest Lafayette.
 Spring '10
 NA

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