Suppose you were given data on the price of a gallon of ice cream and


Suppose you were given data on the price of a gallon of ice cream and the sales of ice cream (in gallons) for 60 days. The correlation between ads and sales is -0.40. Does this indicate a significant negative relationship between price and sales at the 0.005 level of significance?

A) Yes

B) No

C) Not enough information to determine significance


Situation 7.2.1:

A real estate builder wishes to determine how house size (House) is influenced by family income (Income), family size (Size), and education of the head of household (School). House size is measured in hundreds of square feet, income is measured in thousands of dollars, and education is in years. The builder randomly selected 50 families and ran the multiple regression. The output is provided below:

















R2 =0.75; Adjusted R2 = 0.73

F = 6.43



Referring to Situation 7.2.1, which of the following values for the level of significance is the smallest for which at least two explanatory variables are significant individually?

A) 0.01

B) 0.025

C) 0.05

D) 0.15



Referring to Situation 7.2.1, what are the degrees of freedom for this F-statistic?

A) 46 for the numerator, 4 for the denominator

B) 3 for the numerator, 49 for the denominator

C) 46 for the numerator, 49 for the denominator

D) 3 for the numerator, 46 for the denominator

Pretty sure answer is D, double check for me please.



Referring to Situation 7.2.1, which of the following values for the level of significance is the smallest for which the regression model as a whole is significant?

A) 0.00005

B) 0.001

C) 0.01

D) 0.05



Referring to Situation 7.2.1, what is the predicted house size (in hundreds of square feet) for an individual earning an annual income of $40,000, having a family size of four, and going to school a total of 13 years?

A) 11.43

B) 15.15

C) 24.68

D) 53.87



Referring to Situation 7.2.1, one individual in the sample had an annual income of $100,000, a family size of 10, and an education of 16 years. This individual owned a home with an area of 7,000 square feet (House = 70.00). What is the residual (in hundreds of square feet) for this data point?

A) 7.40

B) 2.52

C) – 2.52

D) – 4.89




Situation 7.2.2:

A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The output below shows results




Standard Error










R2 =0.69; Adjusted R2 = 0.66

F = 25.43



Referring to Situation 7.2.2, which of the independent variables (capital, wages) in the model are significant at the 5% level? (Hint: the table reports standard errors not t-statistics)

A) Capital, Wages

B) Capital

C) Wages

D) None of the above



Referring to Situation 7.2.2, the observed value of the F-statistic is given on the printout as 25.43. What are the degrees of freedom for this F-statistic?

A) 25 for the numerator, 2 for the denominator

B) 2 for the numerator, 23 for the denominator 

C) 23 for the numerator, 25 for the denominator

D) 2 for the numerator, 25 for the denominator

Pretty sure the answer is B, but double check for me please



The economist in Situation 7.2.2 decided to add a new variable, energy expenditures, to the model. The new results included an R2 = 0.78 and Adjusted R2 = 0.72. How do you interpret these changes?

A) Since R2 increased, the new variable was an important addition to the model.

B) Since Adjusted R2 increased, the new variable was an important addition to the model.

C) One cannot evaluate the importance of the new variable to the model without knowing either the standard error or t-statistic for the variable’s coefficient.

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Assignment Help has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!


Essay Writing Services

At Assignment Help, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.


Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!


Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.


Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.


College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!


Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.