Suppose that you have been asked to estimate a regression model to explain the number of people jogging a mile or more on the school track to help decide whether to build a second track to handle all the joggers You collect data by living in a press box for the spring semester, and you run two possible explanatory equations A Y 125 0 15 0X 1 1 0X 2 1 5X3 R 2 75 B Y 123 0 14 0X 1 5 5X 2 3 7X4 R 2 73 Where Y the number of joggers on a given day X 1 inches of rain that day X 2 hours of sunshine that day X 3 the high temperature for that day (in degrees F) X 4 the number of classes with term papers due the next day a Which of the two (admittedly hypothetical) equations do you prefer Why b How is it possible to get different estimated signs for the coefficient of the same variable using the same data

Question: Suppose that you have been asked to estimate a regression model to explain the number of people jogging a mile or more on the school

Suppose that you have been asked to estimate a regression model to explain the number of people jogging a mile or more on the school track to help decide whether to build a second track to handle all the joggers. You collect data by living in a press box for the spring semester, and you run two possible explanatory equations:

A: Ŷ = 125.0 – 15.0X₁ - 1.0X₂ + 1.5X3 R̅² = .75

B: Ŷ = 123.0 – 14.0X₁ + 5.5X₂ - 3.7X4 R̅² = .73

Where:

Y = the number of joggers on a given day

X₁ = inches of rain that day

X₂ = hours of sunshine that day

X₃ = the high temperature for that day (in degrees F)

X₄ = the number of classes with term papers due the next day

a. Which of the two (admittedly hypothetical) equations do you prefer? Why?

b. How is it possible to get different estimated signs for the coefficient of the same variable using the same data?

Step by Step Solution

★★★★★

3.23 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Even though the fit in Equation A is better most researchers wo... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (2 attachments)

1443_6054778c05ce8_641439.pdf

180 KBs PDF File

1443_6054778c05ce8_641439.docx

120 KBs Word File

Students Have Also Explored These Related Econometrics Questions!

Suppose that you have been asked to recommend a forecasting technique that would be appropriate to prepare a forecast, given the following situational characteristics: a. You have 10 years of...

Suppose that you have been asked by your employer to evaluate the potential purchase of another company. The company has been in the chemical business for more than 60 years and has production and...

You have been asked to estimate the beta of a high-technology firm that has three divisions with the characteristics shown in Table. a. What is the beta of the equity of the firm? b. If the risk-free...

3) Suppose that you have been asked to estimate an econometric model to explain the number of people jogging a mile or more on the school track to help decide whether to build a second track to...

Stock Prices Business Statistics-Semester Project Introduction: The stock market is a very powerful investing tool and very difficult to understand. The stock market is simply a place where stocks...

PRICE 529000 629000 649000 699000 769000 879000 949000 520000 725000 729000 739000 739000 815000 829000 849000 849000 899000 928000 949000 1149000 1199000 650000 750000 769000 819000 845000 849000...

OPRE 3360: Managerial Methods in Decision Making Under Uncertainty Assessment Assignment [Part A: Module II - Hypothesis Testing and Statistical Inference] [Metacritic and The Big Short] Metacritic...

Base on this question: . You are looking to purchase a house in Norman and want to see if the Tiebout model holds. You personally care a lot about the local public schools that your (pretend)...

Deciding where to locate a new retail store is an important decision. The manager of a chain of pizza shops plans to use a regression model to help select a location for a new shop. They decide to...

Feeder Computer Systems Design Ltd. (Feeder) designs and installs com puter networks for commercial customers. In December 2016, Feeder signed a contract with Magyar Telecommunications Ltd. (Magyar)...

Drake Company's contribution format income statement for the most recent year appears below: Sales (26,000 units).......... Variable expenses..... Contribution margin. Fixed expenses. Net operating...

fThe FP ( Hex ) number for V 3 2 7 5 2

The number of messages sent to a computer bulletin board is a Poisson random variable with a mean of 5 messages per hour. (a) What is the probability that 5 messages are received in 1 hour? (b) What...

Is the regression line shown in Figure I.3 of the Introduction the PRF or the SRF? Why? How would you interpret the scatterpoints around the regression line? Besides GDP, what other factors, or...

You are given the data in Table 2.7 for the United States for years 19802006. a. Plot the male civilian labor force participation rate against male civilian unemployment rate. Eyeball a regression...

Table 2.8 gives data on expenditure on food and total expenditure, measured in rupees, for a sample of 55 rural households from India. (In early 2000, a U.S. dollar was about 40 Indian rupees.) a....

Post Card Depot, a large retailer of post cards, orders 4,346,060 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 6 times over the next year. Post Card Depot...

Could you help me solve this problem of stochastic processes in continuous time markov chains? Problem: Suppose S frogs play in a lake. When they are in the sun, they jump into the lake with rate =...

Question 2 [1 marks] A researcher is testing a new design of running shoe. To test if the shoe is better designed, they had 23 test athletes of varying skill levels. The athletes had to complete one...