Question

# A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model:...

A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model: Attendance = ?0 + ?1Price + ?2Temperature + ?3Rides + ?, where Attendance is the daily attendance (in 1,000s), Price is the gate price (in \$), Temperature is the average daily temperature (in °F), and Rides is the number of rides at the amusement park. A portion of the regression results is shown in the accompanying table.

 df SS MS F Significance F Regression 3 29,524.41 9,841.47 2.18E-14 Residual 26 2,564.37 98.63 Total 29 32,088.78 Coefficients Standard Error t-stat p-value Lower 95% Upper 95% Intercept 27.328 40.254 0.5032 ?55.415 110.071 Price ?1.201 0.294 0.0004 ?1.805 ?0.598 Temperature 0.008 0.208 0.9693 ?0.419 0.435 Rides 3.621 0.364 2.32E-10 2.874 4.369

When testing whether the explanatory variables Temperature and Rides are jointly significant, the error sum of squares for the restricted model is SSER = 12,343.78. Which of the following is the value of the test statistic when conducting this test?

49.58

?4.09

25.33

Question 9

Tiffany & Co. has been the world's premier jeweler since 1837. The performance of Tiffany's stock is likely to be strongly influenced by the economy. Monthly data for Tiffany's risk-adjusted return and the risk-adjusted market return are collected for a five-year period (n = 60). The accompanying table shows the regression results when estimating the CAPM model for Tiffany's return.

 Coefficients Standard Error t-stat p-value Lower 95% Upper 95% Intercept 0.0198 0.010 1.98 0.0598 ?0.0008 0.0405 RM – Rf 1.827 0.191 9.58 1.494E-13 1.4456 2.2094

When testing whether the beta coefficient is significantly greater than one, the value of the test statistic is ________.

9.58

4.33

1.98

Question 10

A sociologist wishes to study the relationship between happiness and age. He interviews 24 individuals and collects data on age and happiness, measured on a scale from 0 to 100. He estimates the following model: Happiness = ?0 + ?1Age + ?. The following table summarizes a portion of the regression results.

 Coefficients Standard Error t-stat p-value Intercept 56.1772 5.2145 10.7732 0.0000 Age 0.2845 0.0871 3.2671 0.0035

At the 1% significance level, which of the following is correct?

 Do not reject the null hypothesis. At 1% significance level, we conclude that Age is not significant in explaining Happiness. Reject the null hypothesis. At 1% significance level, we conclude that Age is significant in explaining Happiness. Reject the null hypothesis. At 1% significance level, we conclude that Age is not significant in explaining Happiness. Do not reject the null hypothesis. At 1% significance level, we conclude that Age is significant in explaining Happiness.

?1.98

99.78 chose this one just double checking

Q 8) F score= MSRegression/ MSResidual

Q9) Hypothesis test :

and

The test statistic:

Q 10) Coefficient of AGE: t= 3.2671 and P-value= 0.0035

P-value is less than 0.01. The test statistic is significant and rejects H0.

Reject the null hypothesis. At 1% significance level, we conclude that Age is significant in explaining Happiness.