Consider the following population regression function: In(price)=Bo+B₂ln(dist)+u, where price represents housing price and distrepresents distance from a recently built garbage incinerator. Data from 1988 for houses sold in Andover, Massachusetts are usedto estimate the model. The intercept, Bo, is estimated to equal 9.40, and the slope parameter, B₁, is estimated to equal 0.312.Does simple regression provide an unbiased estimator of the ceteris paribus elasticity of price with respect to dist? Explain.

Answered: Image /qna-images/answer/8a40862c-83e2-426b-8bed-2ebe15b4f454.jpg

Answered: Consider the following population…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The General Aviation Manufacturers Association has reported annual flying hours and fuel consumption for airplanes with a single, piston-driven engine as listedin file XR15057. Data are in millions of flying hours and millions of gallons of fuel, respectively. Determine the linear regression equation describing fuel consumption as a function of flying hours, then identify and interpret the slope, the coefficient of correlation, and the coefficient of determination. At the 0.05 level of significance, could the population slope and the population coefficient of correlation be zero? Determine the 95% confidence intervalfor the population slope.(you can see file XR15057 from photo)
The police chief believes that maintenance costs on high-mileage police vehicles are much higher than those costs for low-mileage vehicles. If high-mileage vehicles are costing too much, it may be more economical to purchase more vehicles. An analyst in the department regresses yearly maintenance costs (Y) for a sample of 200 police vehicles on each vehicle’s total mileage for the year (X). The regression equation finds: Y = $50 + .030X with a r2 of .90 What is the IV? What is the DV? If the mileage increases by one mile, what is the predicted increase in maintenance costs? If a vehicle’s mileage for the year is 50,000, what is its predicted maintenance costs? What does an r2 of .90 tell us? Is this a strong or weak correlation? How can you tell?
On the first day of class, an economics professor administers a test to gauge the math preparedness of her students. She believes that the performance on this math test and the number of hours studied per week on the course are the primary factors that predict a student's score on the final exam. Using data from her class of 60 students, she estimates A portion of the regression results is shown in the following table. a. What is the slope coefficient of Hours? b. What is the sample regression equation? c. What is the predicted final exam score for a student who has a math score of 70 and studies 4 hours per week?
The owners of a chain of ice cream stores have the business objective of improving the forecast of daily sales so that staffing shortages can be minimized during the summer season. As a starting point, the owners decide to develop a simple linear regression model to predict daily sales based on atmospheric temperature. They select a sample of 15 consecutive days. The results are shown in the accompanying table. Complete parts (a) through (f) below. Click the icon to view the data table. E Click the icon to view a table of critical values of the Durbin-Watson statistic. a. Assuming a linear relationship, use the least-squares method to compute the regression coefficients b, and b,. b, = - 2.7630 (Round to four decimal places as needed.) %3D Ice cream sales b, = (Round to four decimal places as needed.) %3D Day Sales ($1,000) Temperature (°F) 63 1 2 1.52 1.68 71 75 3 1.92 1.79 74 76 4 2.02 2.36 6. 81 2.16 2.69 81 8 84 2.91 88 10 3.17 90 11 12 3.02 3.27 90 93 99 13 3.42 2.84 88 83 14 15…
A. Write the equation of the regression line. B. Interpret each one of the slopes in this context. C. Calculate the estimated number of days absent and the residual for the first observation in the data set: a student who is aboriginal, male, a slow learner, and missed 2 days of school.
A study of king penguins looked for a relationship between how deep the penguins dive to seek food and how long they stay underwater. For all but the shallowest dives, there is a linear relationship that is different for different penguins. The study report gives a scatterplot for one penguin titled, “The relation of dive duration (DD) to depth (D).” Duration DD is measured in minutes, and depth D is in meters. The report then says, “The regression equation for this bird is DD=2.69+0.0138D. (a) What is the slope of the regression line? (Enter your answer rounded to four decimal places.) slope = (b) On average, if the depth of the dive increases by one meter, what is the increase in the diving duration? (Enter your answer rounded to four decimal places.) increase in duration = minutes (c) According to the regression line, how long does a typical dive to a depth of 168 meters last? (Enter your answer rounded to three decimal places.) length…
Is there multicollinearity in this regression? If there is, would we say the estimates are biased, inefficient or inconsistent..
A linear regression model is designed to predict service charges by a bank (in dollars per month) based on sales revenues of 26 companies who use the services (in millions of dollars). Partial output from Excel gives ŷ = -5428 + 32.756x,, with SSE = 117600, and the p-value = 0.04022 for the estimated slope. Interpret the standard error of the estimate. A B E Approximately 95% of the observed service charges fall within $117600 of the least squares line None of the suggested answers are correct For every $1 million increase in sales revenue, we expect a service charge to increase by $117600 Approximately 96% of the observed service charges fall within $140 of the least squares line. Approximately 95% of the observed service charges equal their corresponding predicted values
A real estate analyst has developed a multiple regression line, y = 60 + 0.068 x1 – 2.5 x2, to predict y = the market price of a home (in $1,000s), using independent variables, x1 = the total number of square feet of living space, and x2 = the age of the house in years. The regression coefficient of x2 suggests this: __________. If the square feet area of living space is kept constant, a 1 year increase in the age of the homes will result in a predicted drop of $2500 in the price of the homes If the square feet area of living space is kept constant, a 1 year increase in the age of the homes will result in a predicted increase of $2500 in the price of the homes Whatever be the square feet area of the living space, a 1 year increase in the age of the homes will result in a predicted increase of $2500 in the price of the homes Whatever be the square feet area of the living space, a 1 year increase in the age of the homes will result in a predicted drop of $2500 in the price of the homes
In the method of regression, data sets are summarized in a useful form. The “independent” pieces of data are called inputs or regressors, whereas a quantity that is a function of the inputs, will be called a response. In an experiment, the effect of increasing storage temperature is related to the number of spoiled loaves of bread after 7 days. In this case, which variable will be the regressor?
Researchers at a large nutrition and weight management company are trying to build a model to predict a person’s body fat percentage from an array of variables. A variables selection method is used to build a regression model. SAS output for the final model is given in photo. Question: What percentage of the variation in percent body fat remains unexplained, even after introducing weight and abdomen circumference into the model, and then also determine the interpretation of the slope for weight?
State the regression equation and use it to predict taxes for a house with lot size 10K.

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