Fit a simple linear regression model to the data, Microeconomics

Assignment Help:

1. Refer to the data in the file "asm2Q1.xls" on the annual number of fatalities (FATALS, y) from gas and dust explosion in coal mines for the years 1915 to 1978 and the number of labour hours (HOURS, x, in millions) of production work.

a) Fit a simple linear regression model to the data and construct a 95% prediction interval for y when x = 60.

b) Use Szroeter's test to investigate the constant variance assumption of the simple linear regression model in a). What conclusion can you draw at 5% level?

c) Suppose instead, a new regression model is fitted using the transformed y value y*=sqrt(y), ie, the model

y* = sqrt(y) = b0 +b1x + e

is fitted. Construct again a 95% prediction interval for y (not y*) when x = 60 based on this transformed model.

d) Use Szroeter's test to investigate the constant variance assumption for the model in c). What conclusion can you draw at 5% level?

e) Compare the two intervals in a) and in c). Which one would you recommend? Explain.


Related Discussions:- Fit a simple linear regression model to the data

Cholesterol within acceptable limits, The recent flooding in the upper Midw...

The recent flooding in the upper Midwest destroyed a important proportion of the corn crop.  Though, it has been discovered that corn oil is far better in keeping cholesterol withi

Selective in exports, Selective in Exports: There are many industries ...

Selective in Exports: There are many industries where India has an advantage because of relatively lower costs of all forms of manpower whether it is professional or factory l

Primary inputs, Normal 0 false false false EN-IN X-NO...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Baumol theory, appraise baumol`s sales revenue maximazation theory as an al...

appraise baumol`s sales revenue maximazation theory as an alternative of the firm

#question.Question: Answer all parts (a, Consider the following insurance m...

Consider the following insurance market. There are two states of the world, B and G, and two types of consumers, H and L, who have probabilities pH =0.5 and pL =0.25 (high and low

Elasticity, why is elasticity important for beachfronf properties

why is elasticity important for beachfronf properties

Supply, Clearly explain the distinction between supply, demand and equilibr...

Clearly explain the distinction between supply, demand and equilibrium price.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd