Reference no: EM132163023

Question 1

Answer all parts of this question

a) A cost accountant has derived the following data on the weekly output of standard size boxes from a factory.

Week

1) Calculate the regression coefficients β^{^}₁ and β^{^}₂ for the equation γ^{^}_i = β^{^}₁ + β^{^}₂X_i

Before estimating, the regression model, plot the data

ii) Interpret the regression coefficients and

b) Repeat this question by using log of each of the above variable.

Question 2

Answer all parts of this question

The following data were given to support the theory that high proton diets reduce the fertility of people:

a) Estimate the least square regression line γ = β₁ + β₂X for the data above

b) Calculate the coefficient of correlation

c) Are data of these types adequate to establish a 'cause and effect' relationship between these two variables? Can any conclusions be drawn from the result of your calculations?

Question 3

Answer all parts of this question

To investigate the relationship between the level of advertising in local papers and the level of sales of a particular consumer product, the marketing manager of a national firm used different levels of advertising in 10 randomly selected geographic areas. The results are given in the table below:

a) Draw a scatter diagram for these data

b) Estimate the least square regression line γ = β₁ + β₂X for the data abuse

c) Calculate R² and interpret the result

d) Use your OLS estimates to predict the level of sales in an area in which £1000 is spent on advertising

Attachment:- Questions.rar