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Unformatted text preview: ECON 3210 3.0 Section A - Fall 2011 Solution for Assignment 2 Question 1: The answer is based on the computer output by running the R-scripts file. a. From the scatterplot in the R-scripts file, it seems like there is a positive linear rela- tionship between the number of years married and the systolic blood pressure. b. Model SBP i = + 1 NY M i + u i i = 1 ,..., 10 where E ( u i ) = 0 ,var ( u i ) = 2 for i = 1 ,..., 10 and u i and u j are independent for i 6 = j . c. From the R-scripts, we have d SBP = 97 . 4877 + 4 . 1248 NY M d. For 1 year more in marriage, the predicted systolic blood pressure increased by 4.1248 units. We should not interpret 97.4877 as it is an extrapolated value. e. d SBP = 97 . 4877 + 4 . 1248(25) = 200 . 61. We should not put too much faith in this prediction as we are extrapolating. f. From the data, we have SBP 2 = 157 and NY M 2 = 10 . 3. Moreover, from the answer in part (c), we have d SBP 2 = 97 . 4877 + 4 . 1248(10 . 3) = 139 . 97....
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- Spring '11