# Scenario 13 1 a manager of a product sales group

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Chapter 4 / Exercise C14
Introductory Econometrics: A Modern Approach
Wooldridge Expert Verified
SCENARIO 13-1 A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X1) and how he/she scored on a business aptitude test (X2). A random sample of 8 employees provides the following: EmployeeYX1X2100 10 7 90 3 10 80 8 9 70 5 60 5 50 7 40 1 9932606314 8 5 4
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Chapter 4 / Exercise C14
Introductory Econometrics: A Modern Approach
Wooldridge Expert Verified
30 1 1 30) Referring to Scenario 13-1, for these data, what is the value for the regression constant, b0? 30) ______
SCENARIO 13-3 An economist is interested to see how consumption for an economy (in \$ billions) is influenced by gross domestic product (\$ billions) and aggregate price (consumer price index). The Microsoft Excel output of this regression is partially reproduced below. SUMMARY OUTPUT Regression Statistics Multiple R 0.991 R Square 0.982 Adjusted R Square 0.976 Standard Error 0.299 Observations ANOVA 10 dfSS MS FSignifFRegression 2 33.4163 16.7082 186.325 1 Residual 7 0.6277 0.0897 Total 9 34.0440 Coeff StdError t Statp-valueIntercept -0.0861 0.5674 -0.152 0.8837 GDP 0.7654 0.0574 13.340 0.0001 Price -0.0006 0.0028 -0.219 0.8330 31) Referring to Scenario 13-3, what is the predicted consumption level for an economy with GDP equal to \$4 billion and an aggregate price index of 150? 31) ______ 0.000
32) The coefficient of multiple determination r2Y.12 32) ______
2.
b1. SCENARIO 13-3 An economist is interested to see how consumption for an economy (in \$ billions) is influenced by gross domestic product (\$ billions) and aggregate price (consumer price index). The Microsoft Excel output of this regression is partially reproduced below. SUMMARY OUTPUT
Regression Statistics Multiple R 0.991 R Square 0.982 Adjusted R Square 0.976 Standard Error 0.299 Observations ANOVA 10 dfSS MS FSignifFRegression 2 33.4163 16.7082 186.325 0.0001 Residual 7 0.6277 0.0897 Total 9 34.0440 Coeff StdError t Statp-valueIntercept -0.0861 0.5674 -0.152 0.8837 GDP 0.7654 0.0574 13.340 0.0001 Price -0.0006 0.0028 -0.219 0.8330 33) Referring to Scenario 13-3, when the economist used a simple linear regression model with consumption as the dependent variable and GDP as the independent variable, he obtained an r2 value of 0.971. What additional percentage of the total variation of consumption has been explained by including aggregate prices in the multiple regression? 33) ______ A) 11.1 B) 1.1 C) 98.2 D) 2.8
34) In a multiple regression model, which of the following is correct regarding the value of the adjusted r2? 34) ______
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