# 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. To assess the impact of various factors on ratings, the model

Y = β0 + β1X1 + β2X2 + β3X3 + ε

was fitted for 25 such courses, where

Y = average rating by participants of the course

X= = percentage of course time spent in group discussion sessions

X2 = amount of money (in dollars) per course member spent on the preparation of subject matter material

X3 = amount of money per course member spent on the provision of non-course-related material (food, drinks, and so forth)

Part of the SAS computer output for the fitted regression is shown next.

R@Square = 0.579

a. Interpret the estimated regression coefficients.

b. Interpret the coefficient of determination.

c. Test, at the 5% level, the null hypothesis that, taken together, the three independent variables do not linearly influence the course rating.

d. Find and interpret a 90% confidence interval for β1.

e. Test the null hypothesis

H0: β2 = 0

against the alternative

H0: β2 > 0

and interpret your result.

f. Test at the 10% level the null hypothesis

H0: β3 = 0

against the alternative

H0: β2 ≠ 0

and interpret your result.

Y = β0 + β1X1 + β2X2 + β3X3 + ε

was fitted for 25 such courses, where

Y = average rating by participants of the course

X= = percentage of course time spent in group discussion sessions

X2 = amount of money (in dollars) per course member spent on the preparation of subject matter material

X3 = amount of money per course member spent on the provision of non-course-related material (food, drinks, and so forth)

Part of the SAS computer output for the fitted regression is shown next.

R@Square = 0.579

a. Interpret the estimated regression coefficients.

b. Interpret the coefficient of determination.

c. Test, at the 5% level, the null hypothesis that, taken together, the three independent variables do not linearly influence the course rating.

d. Find and interpret a 90% confidence interval for β1.

e. Test the null hypothesis

H0: β2 = 0

against the alternative

H0: β2 > 0

and interpret your result.

f. Test at the 10% level the null hypothesis

H0: β3 = 0

against the alternative

H0: β2 ≠ 0

and interpret your result.

**View Solution:**## Answer to relevant Questions

At the end of classes professors are rated by their students on a scale of 1 (poor) to 5 (excellent). Students are also asked what course grades they expect, and these are coded as A = 4, B = 3, and so on. The data file ...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 ...Use the data from the Retail Sales file to estimate the regression model yt = β0 + β1xt + γyt-1 + εt and test the null hypothesis that g = 0, where yt = retail sales per household xt = disposable income per household Transportation Research, Inc., has asked you to prepare some multiple regression equations to estimate the effect of variables on fuel economy. The data for this study are contained in the data file Motors, and the dependent ...Write the model specification and define the variables for a multiple regression model to predict the cost per unit produced as a function of factory type (indicated as classic technology, computer-controlled machines, and ...Post your question