# Question

An aircraft company wanted to predict the number of worker-hours necessary to finish the design of a new plane. Relevant explanatory variables were thought to be the plane’s top speed, its weight, and the number of parts it had in common with other models built by the company. A sample of 27 of the company’s planes was taken, and the following model was estimated:

y = β0 + β1x1 + β2x2 + β3x3 + ε

where

y = design effort, in millions of worker-hours

x1 = plane’s top speed, in miles per hour

x2 = plane’s weight, in tons

x3 = percentage of parts in common with other models

The estimated regression coefficients were as follows:

b1 = 0.661 b2 = 0.065 b3 = -0.018

The total sum of squares and regression sum of squares were found to be as follows:

SST = 3.881 and SSR = 3.549

a. Test the null hypothesis:

H0: β1 = β2 = β3 = 0

b. Set out the analysis of variance table.

y = β0 + β1x1 + β2x2 + β3x3 + ε

where

y = design effort, in millions of worker-hours

x1 = plane’s top speed, in miles per hour

x2 = plane’s weight, in tons

x3 = percentage of parts in common with other models

The estimated regression coefficients were as follows:

b1 = 0.661 b2 = 0.065 b3 = -0.018

The total sum of squares and regression sum of squares were found to be as follows:

SST = 3.881 and SSR = 3.549

a. Test the null hypothesis:

H0: β1 = β2 = β3 = 0

b. Set out the analysis of variance table.

## Answer to 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 y = β0 + β1x1 + β2x2 + ε where y = change over the ...The following model was fitted to a sample of 30 families in order to explain household milk consumption: y = β0 + β1x1 + β2x2 + ε where y = milk consumption, in quarts per week x1 = weekly income, in hundreds of ...Consider the following two equations estimated using the procedures developed in this section: i. yi = 4x1.8 ii. yi = 1 + 2xi + 2x2i Compute values of yi when xi = 1, 2, 4, 6, 8, 10. Consider the following nonlinear model with multiplicative errors: a. Show how you would obtain the coefficient estimates. Coefficient restrictions must be satisfied. Show all your work and explain what you are doing. b. ...A business school dean wanted to assess the importance of factors that might help in predicting success in law school. For a random sample of 50 students, data were obtained when students graduated from law school, and the ...Post your question

0