Management 489 Midterm 2

Unlock access to all the studying documents.

View Full Document

TABLE 17-12

The marketing manager for a nationally franchised lawn service company would like to

study the characteristics that differentiate home owners who do and do not have a lawn

service. A random sample of 30 home owners located in a suburban area near a large

city was selected; 15 did not have a lawn service (code 0) and 15 had a lawn service

(code 1). Additional information available concerning these 30 home owners includes

family income (Income, in thousands of dollars), lawn size (Lawn Size, in thousands of

square feet), attitude toward outdoor recreational activities (Attitude 0 = unfavorable, 1

= favorable), number of teenagers in the household (Teenager), and age of the head of

the household (Age).

The Minitab output is given below:

Referring to Table 17-12, what should be the decision (‘reject’ or ‘do not reject’) on the

null hypothesis when testing whether Age makes a significant contribution to the model

in the presence of the other independent variables at a 0.05 level of significance?

TABLE 3-7

In a recent academic year, many public universities in the United States raised tuition

and fees due to a decrease in state subsidies. The change in the cost of tuition, a shared

dormitory room, and the most popular meal plan from the previous academic year for a

sample of 10 public universities were as follows: $1,589, $593, $1,223, $869, $423,

$1,720, $708, $1,425, $922 and $308.

Referring to Table 3-7, what is the standard deviation of the change in the cost?

The number of 911 calls in Butte, Montana, has a Poisson distribution with a mean of

10.0 calls a day. The standard deviation of the number of 911 calls in a day is

________.

TABLE 17-10

Given below are results from the regression analysis where the dependent variable is

the number of weeks a worker is unemployed due to a layoff (Unemploy) and the

independent variables are the age of the worker (Age), the number of years of education

received (Edu), the number of years at the previous job (Job Yr), a dummy variable for

marital status (Married: 1 = married, 0 = otherwise), a dummy variable for head of

household (Head: 1 = yes, 0 = no) and a dummy variable for management position

(Manager: 1 = yes, 0 = no). We shall call this Model 1. The coefficient of partial

determination ( ) of each of the 6 predictors are, respectively,

0.2807, 0.0386, 0.0317, 0.0141, 0.0958, and 0.1201.

Model 2 is the regression analysis where the dependent variable is Unemploy and the

independent variables are Age and Manager. The results of the regression analysis are

given below:

Referring to Table 17-10 and using both Model 1 and Model 2, what are the degrees of

freedom of the test statistic for testing whether the independent variables that are not

significant individually are also not significant as a group in explaining the variation in

the dependent variable at a 5% level of significance?

TABLE 17-3

A financial analyst wanted to examine the relationship between salary (in $1,000) and 4

variables: age (X1 = Age), experience in the field (X2 = Exper), number of degrees (X3 =

Degrees), and number of previous jobs in the field (X4 = Prevjobs). He took a sample of

20 employees and obtained the following Microsoft Excel output:

SUMMARY OUTPUT

Regression Statistics

ANOVA

Referring to Table 17-3, the net regression coefficient of X2 is ________.

Referring to Table 14-18, what is the estimated probability that a

school with a mean SAT score of 1100 and a TOEFL criterion that is

not at least 90?

TABLE 14-18

A logistic regression model was estimated in order to predict the

probability that a randomly chosen university or college would be a

private university using information on mean total Scholastic Aptitude

Test score (SAT) at the university or college and whether the TOEFL

criterion is at least 90 (Toe90 = 1 if yes, 0 otherwise). The

dependent variable, Y, is school type (Type = 1 if private and 0

otherwise).

The PHStat output is given below: