STAT 525: Fall 2016
Homework 1 Solution
1) a) The SAS output is given below.
The estimated regression function is E(Y) = 3.4667 + 3.9 X , where Y is the number
broken and X is the number of transfers. According to the figure below, the linear
regression s

STAT 525: Fall 2016
Homework 7 Solution
1) 9.6) Flowcharts omitted. See textbook section 9.4.
2)
a) See SAS output below. The maximum adjusted R-squared_p, minimum C_p,
minimum AIC_p, and minimum PRESS_p all identify the subset of x1 x3 as the best
subset

Money and Banking
Economics 311
Midterm Exam Fall 2016
25 October 2016
Part I Definitions Six Questions
For each question, please define the term briefly in one or two sentences.
(1) Liquidity the ease with which an asset can be turned into ca

STAT 525: Fall 2016
Homework 6
Due: Wednesday, November 9, beginning of class.
This homework continues with more questions from Chapter 7, and also covers
Chapter 8. In the previous assignment, you were assigned to read Chapter 7, excluding
sections 7.4,

STAT 525: Fall 2016
Solution 6
1)
a) See SAS output below.
b) See SAS output below. The estimated regression function is:
c) We see that all the regression coefficients b0, b1, b2 all change when adding X3 to the
model.
1
d) See SAS output below.
SSR(X1)

STAT 525: Fall 2016
Homework 5 Solution
1)
a) The scatterplot from SAS is below.
b) From the scatter plot, one can see that the linear relationship between Y (liking) and
X1. It appears that Y slightly increases as the level of X2 increases.
c) From proc

Money and Banking
Economics 311 Fall 2016
Problem Sets #5 - #8 - SOLUTIONS
1. Consider the Euro-dollar exchange rate (nominal exchange rate = Euros/$US). For
each of these examples, use a supply/demand diagram for the foreign exchange
market to sho

Qingzhao Wang
Problem set 1
1. The overall process of using regression models to address a scientific question has 5
steps. First, exploratory data analysis. For example, we do research and analyze the
data we have, what relations they have. Second, devel

UMass Stat525: Linear Models
March 8, 2016
Lecture 11: Model Selection
Primary Scribe: Qingzhao Wang
Model Selection Steps(9.1)
Four Steps
Step 1.
Step 2.
Step 3.
Step 4.
Data collection and preparation.
Reduction of predictors.
Model refinement and secti

Qingzhao Wang
Problem set 2
1.a. 0=2.11405
1=0.03883
Regression function: Y=2.11405 + 0.03883X+
b. The estimated regression function appears to not fit the data well.
c. Y=2.11405 + 0.03883(30)=3.27895
d. E(Y)=2.11405+0.03883E(X+1)-(2.11405+0.03883X)=0.03

Money and Banking
Economics 311 Fall 2016
Problem Set #8
1. Suppose the current exchange rate of the Peruvian sol (the currency of Peru)
were 3.5 soles/$US. Consider a U.S. investor who is thinking of using dollars to
purchase one-year Peruvian gov

Money and Banking
Economics 311 Fall 2016
Problem Set #7
1. Consider a commercial banking sector in which the reserve requirement is 8%,
the ratio of excess reserves to deposits is 2%, and the ratio of currency holdings to
deposits is 10%.
a.

Money and Banking
Economics 311 Fall 2016
Problem Set #6
1. Consider a commercial bank with assets of $2,000 million ($2 billion) and
liabilities of $1,700 million. The banks after-tax earnings are $30 million.
a. Calculate the return on assets

STAT 525: Fall 2016
Homework 2
Due Friday, September 30, beginning of class.
Read Chapter 2 in the textbook, to section 2.5.
1) A persons muscle mass is expected to decrease with age. To explore this relationship
in women, a nutritionist randomly selected

STAT 525: Fall 2016
Homework 1
Due: Wednesday, September 21, beginning of class.
-Read Chapter 1 in the textbook.
- Show all work for the following questions; partial credit will be given and full credit
will not be given unless all work is shown.
-See in

STAT 525: Fall 2016
Homework 4
Due: Wednesday, Oct. 19, beginning of class.
Read Chapter 5 in the text.
1) 5.3 part (1) only. Assume i = 1,4.
2) Flavor deterioration problem. The results shown below were obtained for a small-scale
experiment to study the

STAT 525: Fall 2016
Homework 1 Solution
1) a) The SAS output is given below.
The estimated regression function is Y = 3.4667 + 3.9 X , where Y is the number
broken and X is the number of transfers. According to the figure below, the linear
regression supp

STAT 525: Fall 2016
Homework 3
Due Wednesday, October 12, beginning of class.
Read Chapter 2 in the text, sections 2.7, 2.9, 2.10. We are excluding sections 2.6, 2.8 and
2.11. Also read Chapter 3 in the text, excluding sections 3.4, 3.5, 3.6, 3.7, 3.10.
1

STAT 525: Fall 2016
Homework 2 Solution
1) The SAS output is below for parts of this question.
1
a) The estimated regression function is y = 156.1036 -1.18700 x. The linear regression
looks like a good fit in terms of picking up the general trend in how m

STAT 525: Fall 2016
Homework 5
Due: Wednesday, November 2, beginning of class.
Read Chapter 6 in the textbook, and Chapter 7, excluding Sections 7.4, 7.5.
1) In a small-scale experimental study of the relation between degree of brand liking (Y)
and moistu

STAT 525: Fall 2016
Solution 3
1)
a) The following is the ANOVA table from SAS.
b.i) Here we are testing:
H 0 : 1 = 0 vs.
H a : 1 0
b.ii) The degrees of freedom are (1,66).
b.iii) The critical F value is F(0.95, df=(1,66)=3.99. This value is from SAS, sin

STAT 525: Fall 2016
Homework 7
Due: Wednesday, November 30, beginning of class.
Read Chapter 9 in the text.
1) 9.6. Rather than a flowchart, you can just describe each step if you prefer. This
question does not require SAS.
2) Refer to the data set in the

Qingzhao Wang
Problem set 1
1. The overall process of using regression models to address a scientific question has 5
steps. First, exploratory data analysis. For example, we do research and analyze the
data we have, what relations they have. Second, devel