Question

The University Secretary wants to determine how University
grade point average, GPA (highest being 4.0) of a sample of
students from the University depends on a student’s high school GPA
(HS), age of a student (A), achievement test score (AS), average
number of lectures skipped each week (S), gender of a student
(where M=1 if a student is male or 0 otherwise), computer or PC
ownership of a student (where PC=1 if a student owns a computer or
0 otherwise), the means of transport to school (drive, bicycle or
walk; where D=1 if a student drives to campus or 0 otherwise, B=1
if a student bicycles to campus or 0 otherwise), and finally, the
subject major of the student (finance, human resource, marketing
and accounting; where F=1 if a student majors in finance or 0
otherwise, HR=1 if a student majors in human resource or 0
otherwise, MR=1 if a student majors in marketing or 0 otherwise).
Use the correlation matrix and dummy regression output to answer
the questions.

GPA

HS

A

AS

S

M

PC

D

B

F

HR

MR

GPA

1.00

HS

0.41

1.00

A

-0.02

-0.26

1.00

AS

0.21

0.35

-0.08

1.00

S

-0.26

-0.09

-0.08

0.12

1.00

M

-0.08

-0.21

0.04

0.18

0.20

1.00

PC

0.22

0.04

-0.09

0.04

-0.21

-0.07

1.00

D

-0.11

-0.19

0.27

-0.20

0.26

-0.08

0.02

1.00

B

0.08

0.14

-0.05

0.16

-0.13

0.13

-0.10

-0.38

1.00

F

0.08

0.12

-0.22

0.18

0.06

0.04

0.08

-0.08

-0.11

1.00

HR

0.08

0.17

-0.49

0.08

0.06

0.05

-0.04

-0.11

0.07

-0.12

1.00

MR

-0.10

-0.19

0.37

-0.11

-0.05

0.02

0.05

0.08

0.01

-0.15

-0.79

1.00

a) Which 2 pairs of variables are most correlated with the
regressand?

b) Which 3 pairs of variables are mostly multicollinear?

c) Identify 3 pairs of variables that are most
correlated.

The estimated equation by OLS is:

Residual (df) =129, TSS=19.41, ESS=14.03.

Answer #1

In baseball, is there a linear correlation between batting
average and home run percentage? Let x represent the
batting average of a professional baseball player, and let
y represent the player's home run percentage (number of
home runs per 100 times at bat). A random sample of n = 7
professional baseball players gave the following information.
x
0.251
0.257
0.286
0.263
0.268
0.339
0.299
y
1.3
3.0
5.5
3.8
3.5
7.3
5.0
(a) Make a scatter diagram of the...

Code
GEL
ASX All Ordinary
change%
2016/12/30
22.09
5719.1
2017/1/2
22.09
5719.1
0.00%
2017/1/3
22.51
5784.6
1.15%
2017/1/4
22.32
5788.2
0.06%
2017/1/5
22.37
5805.1
0.29%
2017/1/6
22.21
5809
0.07%
2017/1/9
22.38
5857.7
0.84%
2017/1/10
22.16
5813
-0.76%
2017/1/11
22.14
5823.7
0.18%
2017/1/12
21.98
5821.6
-0.04%
2017/1/13
22.03
5776.8
-0.77%
2017/1/16
22.18
5803
0.45%
2017/1/17
22.17
5754.7
-0.83%
2017/1/18
22.24
5733.7
-0.36%
2017/1/19
22.55
5745.4
0.20%
2017/1/20
22.77
5709.7
-0.62%
2017/1/23
22.33
5668
-0.73%
2017/1/24
22.41
5706.3
0.68%
2017/1/25
22.24
5726...

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