# Question: The following model was fitted to a sample of 30

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 dollars

x2 = family size

The least squares estimates of the regression parameters were as follows:

b0 = -0.025 b1 = 0.052 b2 = 1.14

The estimated standard errors were as follows:

sb1 = 0.023 sb2 = 0.35

a. Test, against the appropriate one-sided alternative, the null hypothesis that, for fixed family size, milk consumption does not depend linearly on income.

b. Find 90%, 95%, and 99% confidence intervals for b2.

y = β0 + β1x1 + β2x2 + ε

where

y = milk consumption, in quarts per week

x1 = weekly income, in hundreds of dollars

x2 = family size

The least squares estimates of the regression parameters were as follows:

b0 = -0.025 b1 = 0.052 b2 = 1.14

The estimated standard errors were as follows:

sb1 = 0.023 sb2 = 0.35

a. Test, against the appropriate one-sided alternative, the null hypothesis that, for fixed family size, milk consumption does not depend linearly on income.

b. Find 90%, 95%, and 99% confidence intervals for b2.

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

The following model was fitted to a sample of 25 students using data obtained at the end of their freshman year in college. The aim was to explain students’ weight gains: y = β0 + β1x1 + β2x2 + β3x3 + ε where y = ...A study was conducted to determine whether certain features could be used to explain variability in the prices of furnaces. For a sample of 19 furnaces, the following regression was estimated: y = price, in dollars x1 = ...Given the following estimated linear model y` = 10 + 2x1 + 12x2 + 8x3 a. What is the change in yn when x1 increases by 4? b. What is the change in yn when x3 increases by 1? c. What is the change in yn when x2 increases by ...Given the following estimated linear model y` = 10 - 2x1 – 14x2 + 6x3 a. What is the change in yn when x1 increases by 4? b. What is the change in yn when x3 decreases by 1? c. What is the change in yn when x2 decreases by ...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. ...Post your question