You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +023°Rain - 0.11 Rain² + 0.08 Rain3 -00s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents 132+0.14 Rain -0.009 Rain+007 Rain (5.1) (0.05) (0.03) (0.04) (3) Accidents - 75 +0.24*Rain - 0.13°Rain? (3.6) (0.12) (0.07) (4) Accidents = 9A + 0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification 1 O Specification 2 O Specification 3 OSpecification 4 O None of them since Rain does not have a statistically significant effect on Accidents
You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +023°Rain - 0.11 Rain² + 0.08 Rain3 -00s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents 132+0.14 Rain -0.009 Rain+007 Rain (5.1) (0.05) (0.03) (0.04) (3) Accidents - 75 +0.24*Rain - 0.13°Rain? (3.6) (0.12) (0.07) (4) Accidents = 9A + 0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification 1 O Specification 2 O Specification 3 OSpecification 4 O None of them since Rain does not have a statistically significant effect on Accidents
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 2E
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