Question 1

Based on the following data:

N= 12

X=687

Y=741

XY= 48407

X²=45591

Y²=52525

1. Compute for Bo and B1
2. Determine the correlation coefficient and coefficient determination
3. Interpret the answer

Question 2

Consider the following model:

a.) Yhat _i=-0.261-2.306D_2i-1.7327D_3i+2.1289D₂D_3i+0.8028X_I

t = (-0.2357) ( -5.4873)* ( -2.1803)* (9.9094)*

R² = 0.2032, n = 528, a= 0.05

* indicate P value is less than 0.05

Where Y_i hourly wage in dollar

X education (Years if schooling)

D₂ = 1 if female, 0 if male

D₃ = 1 if non-white and non-Hispanic

=0 if otherwise

b) Interpret these results

Question 3

Based on a sample of 20 couples, Jane obtained the following regression:

i) In (Pi/1-Pi)=-9.456+0.3638 income i - 1.107babysitter i

P= probability of restaurant usage, = 1 if went to restaurant, 0 otherwise, Income = the income in thousands of dollars.

ii)Baby sitter = 1 If needed a baby sitter 0 otherwise.Of the 20 couples, 11 regularly went to a restaurant, 6 regularly used 9 babysitter and the income ranged from a low of $1700 to a high of $4400.

iii)Find out the logit value of a couple with an income of $3300 who needed 9 baby sitter.

Question 4

In testing significance of the overall model at 5%level of significance what are the steps to