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When answering the following questions, assume all the assumptions of the neoclassical (stochastic regressor) simple regression (NSR) model with multivariate normally distributed random disturbances are
When answering the following questions, assume all the assumptions of the neoclassical (stochastic regressor) simple regression (NSR) model with multivariate normally distributed random disturbances are satisfied. (b) Clearly state your estimated conditional expectation function (sample regression line). Note that you do not need to estimate your equation manually, but rather you should simply write down your sample regression line using the estimated intercept and coefficient of I given in your summary regression output from Excel. (1 mark) (c) With reference to your estimated equation, calculate (using a calculator) a 90% confidence interval for the coefficient of X" (ie.B, ) in the model. In performing this calculation, use the relevant estimated standard error of the estimator of the coefficient of X given in your summary Excel regression output. Give an interpretation of the confidence interval you calculate. (2 marks) (d) Again with reference to your estimated equation, perform a test of the null hypothesis that the coefficient of number of hours of preliminary training provided to a telemarketer (B, ) equals zero against the alternative that it is greater than zero, using the a = 0.05 (ie. 5%) level of significance. In presenting your answer to thisRegression Statistics Multiple R 0.969429208 R Square 0.939792989 Adjusted R Square 0.938287814 Standard Error 10060.05723 Observations 42 ANOVA df SS MS F Significance F Regression 1 63189661829 63189661829 624.3744583 5.05779E-26 Residual 40 4048190055 101204751.4 Total 41 67237851884 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 88530.32134 3721.667604 23.78780986 3.20668E-25 81008.55054 96052.09215 81008.55054 96052.09215 Training hours 14030.9348 561.5184648 24.98748603 5.05779E-26 12896.06365 15165.80595 12896.06365 15165.80595
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