ECO220Y1 Midterm: ECO220Y1Y UTSG Term Test 220 3 APR14 FORM A Solution

^log(bwght) = 4.66 - .0044 cigs + .0093 log( faminc) + .016 parity

(.22) (.0009) (.0059) (.006)

+ .027 male + .055 white

(.010) (.013)

n = 1,388, R ^ 2 = .0472

and

^ log(bwght) = 4.65 - .0052 cigs + .0110 log( faminc) + .017 parity

(.38) (.0010) (.0085) (.006)

+ .034 male + .045 white - .0030 motheduc + .0032 fatheduc

(.011) (.015) (.0030) (.0026)

n = 1,191, R^2 = .0493.

The variables are defined as in Example 4.9, but we have added a dummy variable for whether

the child is male and a dummy variable indicating whether the child is classified as white.

(i) In the first equation, interpret the coefficient on the variable cigs. In particular, what

is the effect on birth weight from smoking 10 more cigarettes per day?

(ii) How much more is a white child predicted to weigh than a nonwhite child, holding

the other factors in the first equation fixed? Is the difference statistically significant?

(iii) Comment on the estimated effect and statistical significance of motheduc.

(iv) From the given information, why are you unable to compute the F statistic for joint

significance of motheduc and fatheduc? What would you have to do to compute the

F statistic?

Question 1

Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?

Question 2

In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?

Question 3

The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:

Question 4

All of the following are limitations of direct consumer surveys except:

Question 5

Which of the following approaches to understanding and predicting consumer behavior does not actually solicit any information from potential customers?

Question 6

Data collected on a sample of individuals with different characteristics at a specific point in time are called:

Question 7

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

Question 8

An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market is called:

Question 9

Data collected on the same observation unit at a number of points in time are called:

Question 10

A measure of how much the coefficient would vary in regressions based on different samples is called:

Question 11

The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called a(n):

Question 12

Regression analysis that analyzes the relationship between one dependent variable and several independent variables is called:

Question 13

The ratio of the regression coefficient to its standard error is called:

Question 14

The coefficient of determination will range between what values?

Question 15

The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:

Question 16

The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to

1. You are given only three quarterly seasonal indices and quarterly seasonally adjusted data for the entire year. What is the raw data value for Q4? Raw data is not adjusted for seasonality.

Quarter Seasonal Index Seasonally Adjusted Data

Q1 .80 295

Q2 .85 299

Q3 1.15 270

Q4 --- 271

2. One model of exponential smoothing will provide almost the same forecast as a liner trend method. What are linear trend intercept and slope counterparts for exponential smoothing?

A. Alpha and Delta

B. Delta and Gamma

C. Alpha and Gamma

D. Standard Deviation and Mean

3. When performing correlation analysis what is the null hypothesis? What measure in Minitab is used to test it and to be 95% confident in the significance of correlation coefficient.

A. Ho: r = .05 p < .5

B. Ho: r = 0 p >.05

C. Ho: r ? 0 p?.05

D. Ho: r = 0 p?.05

A. The estimated value is 80% of the average monthly seasonal estimate.
B. The estimate is .80 of the forecasted Y trend value.
C. The estimated value is .80 of the historical average CMA values.
D. The estimated value has 20% more variation than the average historical Y data values.

A. H1: u ? $1,368,000 A one-tailed t-test to the left.
B. H1: u = $1,368,000 A two-tailed t-test.
C. H1: u < $1,368,000 A one-tailed t-test to the left.
D. H1: p < $1,368,000 A one-tailed test to the right