# Question: A consulting group offers courses in financial management for executives

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.

## Relevant Questions

In a study of the influence of financial institutions on bond interest rates in Germany, quarterly data over a period of 12 years were analyzed. The postulated model was yi = β0 + β1x1i + β2x2i + εi where yi = change ...Consider a regression analysis with n = 47 and three potential independent variables. Suppose that one of the independent variables has a correlation of 0.95 with the dependent variable. Does this imply that this independent ...The data file Economic Activity contains data for the 50 states in the United States; the variables are described in the Chapter 11 appendix. You are asked to develop a model to predict the percentage of females that are in ...A study was conducted to assess the influence of various factors on the start of new firms in the computer chip industry. For a sample of 70 countries the following model was estimated: R2 = 0.766 where y` = new business ...Based on data from 63 counties, the following model was estimated by least squares: where y` = growth rate in real gross domestic product x1 = real income per capita x2 = average tax rate, as a proportion of gross national ...Post your question