# Question

A consulting group offers courses in financial management for executives. At the end of these courses participants are asked to provide overall ratings of the value of the course. For a sample of 25 courses, the following

where

y` = average rating by participants of the course

x1 = percentage of course time spent in group discussion sessions

x2 = money, in dollars, per course member spent on preparing course material

x3 = money, in dollars, per course member spent on food and drinks

x4 = dummy variable taking the value 1 if a visiting guest lecturer is brought in and 0 otherwise

The numbers in parentheses under the coefficients are the estimated coefficient standard errors.

a. Interpret the estimated coefficient on x4.

b. Test, against the alternative that it is positive, the null hypothesis that the true coefficient on x4 is 0.

c. Interpret the coefficient of determination, and use it to test the null hypothesis that, taken as a group, the four independent variables do not linearly influence the dependent variable.

d. Find and interpret a 95% confidence interval for b2.

where

y` = average rating by participants of the course

x1 = percentage of course time spent in group discussion sessions

x2 = money, in dollars, per course member spent on preparing course material

x3 = money, in dollars, per course member spent on food and drinks

x4 = dummy variable taking the value 1 if a visiting guest lecturer is brought in and 0 otherwise

The numbers in parentheses under the coefficients are the estimated coefficient standard errors.

a. Interpret the estimated coefficient on x4.

b. Test, against the alternative that it is positive, the null hypothesis that the true coefficient on x4 is 0.

c. Interpret the coefficient of determination, and use it to test the null hypothesis that, taken as a group, the four independent variables do not linearly influence the dependent variable.

d. Find and interpret a 95% confidence interval for b2.

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