11200052INTRODUCTIONTOECONOMIC- METHODS COMPUTING ASSIGNMENT

data set:

Marketer	Hours of Training	Sales Revenue
1	3	154143
2	6	128253
3	4	95777
4	3	163683
5	8	175802
6	2	133011
7	2	146582
8	10	114909
9	5	117278
10	5	118444
11	8	126820
12	3	142671
13	9	141866
14	5	71833
15	3	86041
16	7	188153
17	12	138204
18	6	122559
19	4	146737
20	4	78936
21	8	152105
22	6	166422
23	9	134284
24	10	161596
25	4	102001
26	3	110426
27	12	215264
28	9	222971
29	5	89678
30	7	131813
31	6	124686
32	3	133291
33	8	105543
34	6	144833
35	7	123703
36	3	115028
37	11	135451
38	10	108837
39	5	107681
40	5	109995
41	3	125040
42	4	141944

(Tobesubmitted at the end of Week13)

Inthisassignmentyouarerequiredtouse therelevantbuilt-infunctioninExceltoestimate simplelinearregressionmodel.Asessential preparationforthisassignmentyoushouldhave workedthroughthecomputingexercisesets.

Supposethemanagersofatelemarketingcompanyareinterestedintherelationship between the followingtwo variables:

• Thesalesrevenueindollars(sayY)generatedbyatelemarketerinhis/herfirst year of completed service.
• Thenumberofhoursofpreliminarytrainingprovidedtoanewtelemarketer(sayX).

Usinga randomsampleofdatafor42telemarketersthatrecently completedtheirfirstyearof servicewiththecompany,youarerequiredtoestimateaconditionalexpectationfunctionof the followingform byleast squares regressionusingthe Microsoft Excel regression tool.

E(Y|X)=b1+b2X

To generateyour own personalised data set you will need to follow thesteps below.

1. Openthe'AssignmentDataGenerationFile'attachmentinthe'Computing Assignment'linkonthelefthandmenuofthevUWSsiteforthisunit.IftheExcel fileopensin'ProtectedView',justclickon'EnableEditing'beforeundertakingthefollowingsteps.

1. OnceyouhaveopenedtheDataGenerationFileinExcel,youshouldenterthelast fourdigitsofyourstudentnumberintherangeofcellsE2toH2,i.e.withthefifth digitinE2,thesixthdigitinF2,theseventhdigitinG2,andtheeighthdigitinH2. This willgenerateyourpersonaliseddatasetintherangeA1:C43(withtheheadings 'Marketer','HoursofTraining'and'SalesRevenue'inA1,B1andC1,respectively). Notethatthemarkerofyourassignmentwillbeabletocheckthatyouusethecorrect data set correspondingtoyour student number.

1. Opena newnewExcel workbookandcopythe rangeA1:C43containingyourdataset intheDataGenerationFiletothenewworkbook.ClosetheDataGenerationFile, then giveyournewExcelworkbookanameandsaveitonyourcomputerorstorage medium(memorystick,etc.).Apartfromenteringthelastfourdigitsofyourstudent numberandcopyingyourgenerateddata,youwillnotbeabletoedit the Data Generation File.

Seenext page for required assignment tasks

Required Assignment Tasks

Each student is required to submitinMS Word documentformat(at the end of Week 13 to his/hertutor):

• Main Report: Answers toparts (b) to (e).
• Annexure: Asoftcopy ofhis/herpart(a)(seebelow) tabulatedregressionresultsinincludingacopy ofthedatasetusedandthesummaryresultstablefromusingthebuilt-inregression toolinExcel.Studentsarenotrequiredtosubmitanylistofresiduals,residualplots orline fit plots.

a) Usethebuiltregression toolinExcelandyourpersonalizeddataset(seeabove)to estimatethesimpleregression ofsalesrevenueindollars(Y)generatedbya telemarketerinhis/herfirstyearofcompletedserviceonthenumberofhoursof preliminarytrainingprovided to anew telemarketer (X). (2 marks)

Whenansweringthefollowingquestions,assumealltheassumptionsoftheneoclassical (stochasticregressor)simpleregression(NSR)modelwithmultivariatenormallydistributed random disturbancesare satisfied.

b) Clearlystateyourestimatedconditionalexpectationfunction(sampleregressionline).

Notethatyoudonotneedtoestimateyourequationmanually,butratheryoushould simplywritedownyoursampleregressionlineusingtheestimatedinterceptand coefficient ofXgiven inyoursummaryregressionoutput from Excel. (1 mark)

c) With reference to your estimated equation, calculate (using a calculator) a 90%

confidenceintervalforthecoefficientofX(i.e.2)inthemodel. Inperformingthis calculation,usetherelevantestimatedstandarderroroftheestimatorofthe coefficientofXgiveninyoursummaryExcel regressionoutput. Givean interpretation of theconfidenceintervalyoucalculate. (2 marks)

d) Againwithreferencetoyourestimatedequation,performatestofthenullhypothesis thatthecoefficientofnumberofhoursofpreliminarytrainingprovidedtoa telemarketer(2)equalszeroagainstthealternativethatitisgreaterthanzero,using the

=0.05

(i.e. 5%) level of significance. In presenting your answer to this questionyouarerequiredtousethe6-stephypothesistestingproceduregiveninthe unitsummarylecturenotes.Againinansweringthisquestion, youshouldusethe relevantestimatedstandarderroroftheestimator ofthecoefficientofXgiveninyour summaryExcel regression output. (3 marks)

e) Giveaninterpretationoftherealizedcoefficientofdeterminationvalue(r2)givenin yoursummaryExcel regression output. (2 marks)

================ END OF COMPUTING ASSIGNMENT =============