A study estimated the following equation to explain infant mortality using a sample of 20 OECD countries from 1960 to 1985. They obtain the following (abbreviated) results: log (IMR) = 3.93 -0.069 log (TIME) -0.892 log(RGDP) -0.539 log(PHYS) +0.707 log (URBAN) - 0.004 log(FLFPR) - 0.135 log(ED) where IMR infant mortality rate for each country for each year TIME = time trend RGDP real GDP per capita for each country for each year PHYS number of physicians per capita for each country for each year URBAN = percentage of the population in urban areas in each country in each year FLPR female labor force participation rate in each country for each year ED = level of education (in years) in each country for each year Based on their findings, what can we conclude about the relationship between years of education and infant mortality? O a. A 1% increase in years of education leads to a decrease of the infant mortality rate by 0.135%. O b. Each additional year of education decreases the infant mortality rate by 0.135. Oc. Each additional year of education decreases the infant mortality rate by 0.135%. Od. If years of education increase by 1%, the infant mortality rate decreases by 0.00135. QUESTION 22 Suppose that the regression results from the previous question also included the following information: R2=0.968, adj. R2=0.954 What percentage of the variation in the infant mortality rate is not explained by the explanatory variables in the model? O a. 95.4% O b. 96.8% c. 4.6% d. 3.2% QUESTION 23 The data below represents sales for a particular product. If you were to use the moving average method with a span of 3 periods, what would be your forecast for period 5? (Write your answer to the nearest decimal place. For example, if the answer is 3.56, write 3.6) Period 3 1 Sales (in units) 190 120 2 110 100 QUESTION 24 The linear trend Y 120+0.2*t was estimated using a time series with 20 time periods. The forecasted value for time period 22 is QUESTION 25 For the multiple regression model Y=40+15X- 10X2+5x3 if 2 were to increase by 3 units, holding by everything else constant, the value of Y would be expected to (increase or decrease) QUESTION 26 Suppose that a decision maker's utility as a function of her wealth, x, is given by U(x) = In (2x-1000) (where In is the natural logarithm). The decision maker now has $10,000 and two possible decisions. For Alternative 1, she gains $1000 for certain. For Alternative 2, she gains $1500 with probability 0.9 and loses $2,000 with probability 0.1. Which alternative should she choose and what is her expected utility (rounded to 2 decimals)? She should choose Alternative and her expected utility is