2 2. Interpretation of the B2 is such that one percent increase of fare; will induce, on average, 0.3589 percent increase of no.of .passenger; variable. True or False? [ ] Consider the following regression table from simple regression: (a) True In (no.of .passengers;) = B1 + B2In (fare;) + ui, (b) False where all the classical assumptions are satisfied, including the normality of the error term dis- 3. You can reject the null hypothesis of Ho : B2 = 0 at 0.1% significance level. True or False? tribution. Note, you cannot resort to the large sample theory in this case because the sample size is NOT large enough. (a) True Call : (b) False Im(formula = log(no_passengers) ~ log(fare), data = airfare_data) Residuals : 4. The value of the correlation coefficient in(no.of.passengers),In(fare;) is 0.02141. True or False? Min 1Q Median 3Q Max -5. 1467 -0. 6367 -0. 0515 0. 6074 2.8706 ents : (a) True Estimate Std. Error t value Pr(>|tl) (Intercept) 7. 7884 0. 5519 14. 113 1 Residual standard error: 0.9826 on 498 degrees of freedom Multiple R-squared: 0.02141, Adjusted R-squared: 0.01945 1. You want to test the null hypothesis Ho : 1 = 8 vs. the alternative hypothesis H1 : B1 / 8. You constructed a test statistic of the following form T = 7.7884 - [a] 0.5519 Fill in the missing number in [a]. (5pts) [ ] (a) -0.1087 (b) 0.1087 (c) -0.3589 (d) 0.3589 (e) o (f) -1 (g) 1 (h) -8 (i) 8