Question

1. Data for U.S. States and DC was used to examine the relationship between violent crime rate (violent crimes per 100,000 persons per year) and the predictor variables of urbanization (% of the pop. living in urban areas) and poverty rate. A dummy variable indicating whether or not a state is classified as a Southern state was also included.

D_South = 1 if Southern state

D_South = 0 otherwise

Crime = -321.9 + 4.69 Urban + 39.3 Poverty - 649.3 D_South + e

Which of the following represents the fitted relationship between crime, urbanization, and poverty forSouthernstates?

1. Crime = –321.9 + 4.69Urban + 39.3Poverty + 0
2. Crime = –321.9 + 16.8Urban + 33.5Poverty – 649.3*(1)
3. = –971.2 + 4.69Urban + 39.3Poverty
4. Crime = –315.6 + 16.8(0)Urban + 39.3(0) – 649.3*(1) = - 971.2
5. None of the above

2. In the above example Crime in the Southern states is less  than the states average by about  649.

1. True
2. False

3. Abrokeragefirmwantstoestablishthatthemeanannualexpenseforstockfundsislarger than the mean annual expense for municipal bond funds. Set up the null and alternative hypotheses needed to test thishypothesis

a.   H0: mS -mB =0                                       c. H0: mS - mB =0

HA: mS - mB<0                                         HA: mS - mB>0

b.   H0: mS - mB>0                                     d. H0: mS - mB =10

HA: mS - mB<0                                        HA: mS - mB>10

4. In testing the difference between the means of two normally distributed populations, ifμ1

=52 and  μ2 = 50, n1 = 9, and n2 = 13, the degrees of freedom for the tstatisticequals      _.

1. 22
2. 21
3. 19
4. 20

Answer 1