8. You extract approximately 5,000 observations from the Labour Force Survey (LFS) and estimate the following regression function: AHE, 3.32 0.45 Age, (1.0) (0.04) where AHE is average hourly earnings in pounds, Age is the individual's age and the standard errors of the estimators are given in parentheses. Given the specification, your 95% confidence interval for the effect of increasing age by 5 years is approximately: A. [£1.96, £2.54] B. [-£2.58, -£1.92] C. [-£2.64, -£1.86] D. none of the above

The beta of a stock has been estimated as 1.4 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of A. 1.32. B. 1.13. C. 1.0. D. 1.27.

Consider the following computer output from a multiple regression analysis relating the cost of car insurance to the variables: number of car accidents, driver's credit score, and safety rating of the car. Intercept Car Accidents (In last 3 years) Credit Score Safety Rating Coefficients 1186 213.48 Coefficients - 130.46 294.11 Standard Error Does the sign of the coefficient for the variable safety rating make sense? 123.87 21.89 14.26 356.37 t Stat P-value 9.575 0.0000 9.752 0.0000 -9.149 0.0000 0.825 0.4128

The local utility company surveys 12 randomly selected customers. For each survey participant, the company collects the following: annual electric bill (in dollars) and home size (in square feet). Output from a regression analysis appears below: Bill 13.45 + 4.39*Size Coefficients Estimate Std. Error (Intercept) 13.45 Size 4.39 0.54 0.2 We are 90% confident that the mean annual electric bill increases by between dollars and dollars for every additional square foot in home size. Round your answers to three decimal places and enter in increasing order.

The value of PRESS for five different regression models are A = 42.3, B = 47.4, C = 51.5, D =40.6, and E = 54.6. Based only on this statistic, which model is preferred?

8

For a given set of x and y data values, assume that the regression model assumptions are valid and that a 90% confidence interval for ₁ is given by (-2.2, -0.1). Which of the following statements are true? i) At a = 0.10, there is a significant linear relationship between x and y. ii) In the scatterplot of x and y, the values of y tend to decrease as the values of x increase. iii) Based on this confidence interval, we would reject the null hypothesis of no linear relationship at any significance level a ≤ 0.1. Select one: a. i) O b. i) and ii) O c. ii) d. i), ii), and iii)