Question 1

a Equation 2
Equation I
model General model Estimated model

Description dependent variable y dependent variable

=

y
=

Bi =

parameters to be estimate B, =
value of coefficient

x
=

independent variable x
=

independent variable

E = Error term

b i .
B, 0 .
9781 As the number of item produced increased by I unit ,

the production cost per day will increase by 0 .

9781

ii . If the number of item produce increase the mean of production

,

cost per day is increase

. Therefore , there is positive relation ship
between number of item produce and production .
cost So its

support the economic as a priori .

iii. Ho B
tq
:

0
, =

Bi , n -
k S B,

H1
:
B, F O

0 .
9781 to . 025 ,
10
0 .
0219

0 . 9781 2 . 228 0 0219

.

0 9781
. 0 .
0488

0 .
9293 1 . 0269
,

... Reject Ho since zero exclude from the interval .

Therefore

the number of item produce influence the production cost per day

iV . y 18 .
095 +
0 . 97811532 7665 .
 question 2

A i .
Height
* If height in feet increase
,
the mean of average points
increase
. Therefore ,
there is positive relationship between
height and average .
point So its support the economic as

a prior

weight= If weight in kg increase

,
the mean of average point is

decrease
. Therefore
, there is negative relationship

between weight in kg and average point . So its

support the economic as a prior .

percent of successful field goals

& successful field increase
If percent of
goals ,
the mean of

average points increase

. Therefore ,
there is positive relationship
between percent of successful field goals and average points .

so its support the economic as a prior .

ii . B339 . 378 As percent of successful field goals increase by I percent ,

the points will increase
mean of
average by 39 378
.

and the other variable is constant

iii. Quantitative variable Age

Qualitative variable Active in sport Yes ,

No

of
i

b . Number dummy variable = 4 -

1 =
3

I'
X ,
= Government

o otherwise

E
1
X2 =

Health care
0 otherwise

[
xx
=
Education

⑧ otherwise

ii . Reference category is category which no dummy variable

. The

reference category is non-profit

.

iii y B0 +
B,X, + B2X2 +

B3X3
n =
20
 Question 3

a This model has multicollinearity problem where the correlation value between

Inc and wealth is o . 9 .

This mean these two variable are highly
related or depend to each other .
 question 4

a linear regression logistic regression

Dependent var continuous Binary

C i . SI Hypothesis Ho : The logistic regression model is a good fit for the data

Hi
:
The logistic regression model is a poor fit for the data

S2 p value 0 .
764

53 critical value A 0 05
.

54 Decision Accept Ho since P-value a

55 conclusion we have enough evidence to conclude that LRM is

good fit for the data

ii .
property ↳ The probability of credit card application being accepted for

own the property is 1 880

,
higher that not own a
property
as the other variable held constant

Job = The probability of credit card application being accepted for

work with government is 0 . 761 higher that not work with

government as the other variable held constant

iii . odds ratio

:
e022 2 . 779

.. odds credit card application being accepted for male is 2 .

779 more

likely compared to female

iv . 51
:

2 -
1 712
.
+
1 . 0220 +
1 .
8800 +
0 . 7611 0 . 951

S2
0 951 0 279
: P
.

e
.

0 .
951
1 +
e

S3 Since 0 5 then her application will

:

p .

,
not being

accepted