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T2B-Tutorial Problem

The document outlines a tutorial problem involving multiple regression analysis with two questions. The first question focuses on developing and evaluating regression models to predict automobile maintenance expenses based on mileage and age, while assessing multicollinearity. The second question involves analyzing U.S. census data to investigate factors affecting women's labor force participation rates, including estimating a regression model and evaluating its fit and multicollinearity among predictors.

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詠芯謝
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2 views

T2B-Tutorial Problem

The document outlines a tutorial problem involving multiple regression analysis with two questions. The first question focuses on developing and evaluating regression models to predict automobile maintenance expenses based on mileage and age, while assessing multicollinearity. The second question involves analyzing U.S. census data to investigate factors affecting women's labor force participation rates, including estimating a regression model and evaluating its fit and multicollinearity among predictors.

Uploaded by

詠芯謝
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Multiple Regression B – Tutorial Problem

Question 1
A random sample of 57 automobile was selected. Three pieces of information about the automobile
were recorded in the file named “T2BQ1.xlsx”. Let EXPENSE be the cumulative expenditure on the
maintenance for a given automobile, MILES be the cumulative mileage in thousands of miles and
WEEK be its age in weeks since the original purchase.

a. Develop the following three regression models for predicting EXPENSES


(i) With MILES as the only predictor
(ii) With WEEK as the only predictor
(iii) With both MILES and WEEK as the predictors

b. Evaluate the three models developed in part (a), and discuss: are there signs of multicollinearity
among the predictors?

c. Use VIF to tell how serious the multicollinearity among the predictors is.

Question 2
The file “T2BQ2.xlsx” provides 1980 U.S. census data for the 50 states on a variety of variables. The
aim of this study is to investigate the determinants of women’s labor force participation rates.

WLFP = percent of women over 16 years of age in labor force (the dependent variable)
YF = median earnings in dollars by females
YM = median earnings in dollars by males
EDUC = percentage of female high school graduates over 24 years of age
UE = unemployment rate (%)
MR = marriage rate (%) of women at least 16 years of age
DR = divorce rate (%)
URB = percentage of urban population in state
WH = percentage of females over 16 years who are white
a. Estimate the regression model by the method of least squares, use all the available variables to
develop the model.

b. Comment on the model’s fit in terms of the coefficient of determination, significance of


individual variables, and overall significance of the model.

c. Are there signs of serious multicollinearity among the predictors?

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