Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The model yi = Bo +B1Xi + i, where &i ~ N(0,0%) and independent, is to be used to predict the annual consumption of a

image text in transcribed

The model yi = Bo +B1Xi + i, where &i ~ N(0,0%) and independent, is to be used to predict the annual consumption of a product, y, as a function of gender where xi = 1 if the i-th individual is female, and 0 if the individual is male. A sample of n individuals is selected, n, of which are female, and the remaining n, are male. For each of these n individuals, the annual amount spent on the product, y, is recorded. (a) Assuming that the data set is such that the n, observations for females appear first, followed by the na observations for males, specify the y vector and X matrix. (b) Determine the vector b for the least squares estimates. Describe the estimates in terms of the sample mean amounts spent by females and males. (c) Starting from the expression for the estimate of the error term variance in simple linear regression, 52 = P=1Vi - A)?/(n 2), show that s2 = [(n 1)s + (nz 1)s]/(n +n1 2), where s is the sample variance of the y observations for females, and s is the sample variance of the y observations for males. Note that sa here is simply the pooled estimate of variance for a t-test that compares the means of two normally distributed populations that are assumed to have equal variance. The model yi = Bo +B1Xi + i, where &i ~ N(0,0%) and independent, is to be used to predict the annual consumption of a product, y, as a function of gender where xi = 1 if the i-th individual is female, and 0 if the individual is male. A sample of n individuals is selected, n, of which are female, and the remaining n, are male. For each of these n individuals, the annual amount spent on the product, y, is recorded. (a) Assuming that the data set is such that the n, observations for females appear first, followed by the na observations for males, specify the y vector and X matrix. (b) Determine the vector b for the least squares estimates. Describe the estimates in terms of the sample mean amounts spent by females and males. (c) Starting from the expression for the estimate of the error term variance in simple linear regression, 52 = P=1Vi - A)?/(n 2), show that s2 = [(n 1)s + (nz 1)s]/(n +n1 2), where s is the sample variance of the y observations for females, and s is the sample variance of the y observations for males. Note that sa here is simply the pooled estimate of variance for a t-test that compares the means of two normally distributed populations that are assumed to have equal variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Managerial Accounting Version 3.0

Authors: Kurt Heisinger, Joe Ben Hoyle

1st Edition

1453399410, 9781453399415

More Books

Students also viewed these Accounting questions

Question

=+7. What is the big message you want them to know? (THINK SLOGAN.)

Answered: 1 week ago