M II

Ankit Kumar

MBA07197 D 02/12/2021

Quantitative Analysis for Management-II

Prof. Arulanantha Prabu

Declaration:

1. I have submitted faculty feedback 30 minutes prior to appearing in the End-Term Exam.
2. I have not copied the answer/matter in this answer booklet from my classmate, internet and
any other sources.

Signature of the Student

Answer 1)
A1 = k = 1
A2 = n - k - 1 = 10 - 1 - 1 = 8
A3 = n - 1 = 10 - 1 = 9
A4 = SSR = MSR * DoF = 1043.78 * 1 = 1043.78
A5 = R square = SSR/SST = 1043.78/1742.40 = 0.599
A6 = Syx= sqrt(SSE/n-2)=sqrt(698.62/8) = sqrt(87.3275) = 9.345
A7 = Sigma_bo = bo/tstat_bo = 274.21/5.05 = 54.299
A8 = 148.996
A9 = tstat_b1 = b1/sigma_b1 = -2.84/0.82 = -3.463
A10 = -0.0889

Answer 2)

H0: No relationship between stress and salary (beta1=0)

H1: There is linear relationship between stress and salary (beta !=0)
Fstat =11.95
Falpha NrDOF =1 DrDof=8 F_0.05=5.32
Rej Rule: Fstat>Falpha
Reject H0
There is linear relationship b/w stress and salary

Answer 3)

H0: No relationship between stress and salary (beta1=0)

H1: There is linear relationship between stress and salary (beta !=0)
Two tail testing
Tstat_b1=-3.463
Critical values +-t_alpha/2 Dof=n-k-1
+-t_0.025 Dof 8
+-2.306
Tstat lies
 There is linear relationship between stress and salary

Answer 4)
H0: No relationship between stress and salary (beta1=0)
H1: There is linear relationship between stress and salary (beta !=0)
Fstat =11.95
Falpha NrDOF =1 DrDof=8 F_0.01=11.26
Rej Rule: Fstat>Falpha
Reject H0
There is linear relationship b/w stress and salary

Answer 5)
H0: No relationship between stress and salary (beta1=0)
H1: There is linear relationship between stress and salary (beta !=0)
Two tail testing
Tstat_b1=-3.463 Critical values +-t_alpha/2 Dof=n-k-1 +-t_0.005 Dof 8 +-3.355 Tstat lies outside
rejection region. Tstat < - t_alpha/2 Reject H0
There is linear relationship between stress and salary

Answer 6 to 10.

6. R_square = 0. 967
7. The regression model at alpha = 0.05 is insignificant.
8. Beta1 is significant (0.017) at alpha = 0.05
9. Beta2 is significant (0.034) at alpha = 0.05
10. Using regression model equation
Predicted value = Beta0 + Beta1*variable + Beta2*variable_square
Predicted traffic flow = 437.857 + 37.612*speed + (-0.385*Speed_square)
= 437.857 + 37.612*38 – 0.385*38*38
= 873.316

Answer 11-13

11. The multiple linear regression model is significant at alpha = 0.05.

12. Model coefficient for average annual salary for hourly employees significant at alpha = 0.05
13. The model coefficient for size significant at alpha = 0.05

Answer 14-15

14. From the calculation in excel, we get the following table using the 3 independent
variables: Price, Curb Weight and Horsepower.

Price
($1000s) Curb Weight (lb.) Horsepower
Price
($1000s) 1
Curb
Weight (lb.) 0.148 1
Horsepower 0.546 0.601 1
 Therefore, None of the value is greater than 0.7. So, we can say that there is no
multicollinearity in the model.

15. Backward elimination technique:

Variable p-value Rejection rule Decision

MLR k=3 Curb weight 0.939 not significant remove

Do not
MLR k=2 Price 0.026 Significant remove

Therefore, at alpha=0.05, there are 2 independent variable, i.e., Price and Horsepower
that we should keep in the regression model.
Answer 16-20

16.

20,15,30,18,22,19,23,20
Sign
+signs 1
-sign 7
Answer =1 plus sign

17.
Ho: median score = 25
Ha: median score = 25
Hypothesized median = 25

Two tailed testing

Ho: Median = 25

Two Tail testing

Binomial Probability p = probability of + sign = 0.5

Ha: Median = 25
Ho: p = 0.5
Binomial table n-8 p = 0.5
Ha: p = 0.5
P-value

If 25 is actual median + signs – 4

Z-testing P-value= 2*(P(Z<Zstat))
P-value = 2*(Probability of 1 or fewer + signs)
=2*(P(0)+(P(1))
=2*(0.0039+0.0312)
=2*0.0351
=0.0702

P-value= 0.0702

18.

For rejection rule:

If P value is less than alpha we reject Ho

Here, P-value = 0.0702

Alpha=0.05
Here, P-value > alpha
So, we do not reject Ho

19.

At alpha = 0.01
P-value = 0.0702
P-value > alpha
So, we do not reject Ho

20.

For lower test

P-value = P(0) +P(1)
= 0.0039 + 0.312
= 0.3159