4.20 Neter, Kutner, Nachtsheim, and Wasserman (1996) relate the speed, y, with which aparticular insurance innovation is adopted to the size of the insurance firm, x, and the type offirm. The dependent variable y is measured by the number of months elapsed between the timethe first firm adopted the innovation and the time the firm being considered adopted theinnovation. The size of the firm, x, is measured by the total assets of the firm, and the type of thefirm -a qualitative independent variable- is either a mutual compony or a stock company. Thedata in the following table are observed.Firm12345678910Number ofMonthsElapsed,y1726213022463 0U 1219416Size of Firm,(x $1 million),X1519217531104277210120290238Туреof FirmMutualMutualMutualMutualMutualMutualMutualMutualMutualMutualFirm11121314151617181920Number ofMonthsElapsed,y2815113831GT 2120133014Size of Firm,(x $1 million),X1642722956885224166050 305124246Туреof FirmStockStockStockStockStockStockStockStockStockStock(a) Fit a model with just size of firm as independent variable (Model1).(b) Interpret the coefficients in Modell(c) Fit a regression model with size and type of firm as independent variables (Model2)(d) With a proper plot show the effect of different type of firm on the number of monthselapsed(e) Make proper interpretation based on the coefficients in Model2.(f) Run a significant test for the difference of number of months elapsed for different typeof firm (mutual, stock) at level 0.05. Also find a 95% CI and interpret it.(g) Based on model 2, estimate the number of months elapsed for a firm with size 200and type stock. Also find 90% CI and PI for it.(h) Fit a model with size and type as independent variables and consider the interactionterm as well (Model3)(i) Make proper interpretation based on the coefficients in Model3(j) Run a partial F-test by considering Model2=Complete and Model1=Reduced at level0.05.

Since you have posted a question with multiple subparts, we will provide solution to the first three…

(a) Fit a model with just size of firm as independent variable (Modell). (b) Interpret the coefficients in Modell (c) Fit a regression model with size and type of firm as independent variables (Model2) (d) With a proper plot show the effect of different type of firm on the number of months elapsed (e) Make proper interpretation based on the coefficients in Model2. (f) Run a significant test for the difference of number of months elapsed for different type of firm (mutual, stock) at level 0.05. Also find a 95% CI and interpret it. (g) Based on model 2, estimate the number of months elapsed for a firm with size 200 and type stock. Also find 90% CI and PI for it.

(a) Fit a model with just size of firm as independent variable (Modell). (b) Interpret the coefficients in Modell (c) Fit a regression model with size and type of firm as independent variables (Model2) (d) With a proper plot show the effect of different type of firm on the number of months elapsed (e) Make proper interpretation based on the coefficients in Model2. (f) Run a significant test for the difference of number of months elapsed for different type of firm (mutual, stock) at level 0.05. Also find a 95% CI and interpret it. (g) Based on model 2, estimate the number of months elapsed for a firm with size 200 and type stock. Also find 90% CI and PI for it.

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter5: Inverse, Exponential, And Logarithmic Functions

Section5.6: Exponential And Logarithmic Equations

Problem 52E

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