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Category: Business
The trend in home building in recent years has been to emphasize open spaces and great rooms, rather than smaller living rooms and family rooms. A builder of speculative homes in the college community of Oxford, Ohio, had been building such homes, but his homes had been taking many months to sell an...
Coursepivot August 17, 2022 15:45
Here is a tip: Smaller the p-value, greater is the chance of rejecting the null hypothesis (\beta_{i}=0βi​=0). Explanation Given the p-values associated with the least square estimators in the parenthesis (View full solution)
Category: Business
Recall that Figure13.27(a) on page 508 gives n  16 weekly values of Pages Bookstore sales (y), Pages’ advertising expenditure (x1), and competitor’s advertising expenditure (x2). When we fit the model y  b0  b1x1  b2x2  e to the data, we find that the Durbin–Watson statistic is d  1.63– . Use ...
Coursepivot August 17, 2022 15:42
Explanation The Durbin- Watson test is done for testing the first order auto-correlation by stating the null hypothesis that the error terms are not auto-correlated and the alternative hypothesis that (View full solution)
Category: Business
For each of the following cases, use the indicated residual plots to check for any violations of the regression assumptions. a The Tasty Sub Shop Case: For the model relating Revenue to Population and Business Rating, use the following plots: b The Natural Gas Consumption Case: For the model relatin...
Coursepivot August 17, 2022 15:41
b Explanation We need to use the plots for the comparison of the models. In both the plots there is a randomness in the residual plots.The plots did not has (View full solution)
Category: Business
Discuss how we use residual plots to check the regression assumptions for multiple regression
Coursepivot August 17, 2022 15:38
Explanation In multiple linear regression model,the residuals of models are plot against a)observations of all independent variables b)predicted value dependent variable c)if it is a time series data,the order of (View full solution)
Category: Business
List the criteria and model selection procedures we use to compare regression models
Coursepivot August 17, 2022 15:19
Verified Answer We use: Variance inflation factor (VIF) calculated as (1/1-R2j) . If largest VIF > 10 implies very strong multicollinearity and 5
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