Professional Documents
Culture Documents
Solution
Solution
Solution
(i) (ii)
2(a)
2(b)
3.(a) House Size = -1.6335 +0.4485 Family Income +4.2615 Family Size-0.6517 Education (b) SSR = SST- SSE = 3605.7736 F-ratio = MSR/MSE = 35.6353 MSR = SSR/3 = 1201.9245 MSE = SSE/36 =33.7285
(c)
R2
There is about 74.81% of the total variation in house size can be explained by all the independent variables. (d) H0 : 1 = 2 = 3 = 0 H1 : At least one i 0
At = 0.05, critical value F0.05,3,36 = 2.866 Decision rule: Reject Ho if F > 2.866 Conclusion: Reject H0 as F = 35.6353 > 2.866. The model is useful in predicting the house size. (e) H0 : i = 0 H1 : i 0 for i = 1, 2, 3 Reject the null hypotheses if t > 2.024 or t <-2.024 Family income (X1) and family size (X2) are significant at 0.05 whereas education (X3) is not significant in explaining house size and should not be included in the model because its t-stat falls within the non-rejection area.
4.
(a)
Expected frequencies (ei) Department Sales Production Administration < 5 years 8 16 16 5 to 15 years 16 32 32 > 15 years 6 12 12
CV= 9.488 Test stat = 23 Reject Ho. 4 (b) (i) (ii) 107.56 107.67 106.56 (iii) Answer different because different weight being used.