A consumer affairs group wants to examine the relationship between interest in public affairs, TV viewing (in # hours/week), newspaper/magazine readership (in # minutes/day), and the network news channel most frequently watched (ABC, CBS, or NBC).  A pilot study has been conducted and the sample results are given in the EXCEL worksheet Viewing: 

1. The qualitative variable, most frequently watched network, has to be dummy coded in a regression model.  Define the required dummy variables and a coding scheme for this variable. USE "ABC" as the baseline class.
2. Develop a regression model to predict interest in public affairs, using TV viewing, newspaper/magazine reading, and most frequently watched network (as dummy coded in part a)) as independent variables.
3.   What is the regression equation?  
4. What proportion of total variation in the interest in public affairs can be explained by these three factors in the regression model? 
5. Using the regression model developed above, give the regression equation that relates interest in public affairs to TV viewing and magazine/newspaper reading for the viewers who watched NBC network news channel most frequently.
6. Provide a point estimator for the interest in public affairs of an individual viewer who views TV 45 hours/week, reads magazine/newspaper 25 minutes/day and watches NBC network most frequently.
7. Do you think the prediction in part 6) would be highly reliable? Explain (using Check for extrapolation test).
8. Does the qualitative factor, most frequently watched network, appear to have any significant effect on the interest in public affair? Explain.
9. Do you have a recommendation for a better model, based on your insights in part (8)?
10. Check the model assumption about the error term?

Transcribed Image Text:

Interest 80 47 93 46 71 98 75 56 84 75 88 78 TV Viewing 25 22 7 37 13 5 20 27 8 14 7 11 Reading 42 8 80 28 16 70 20 25 32 18 43 17 Network CBS ABC NBC ABC CBS CBS CBS NBC ABC NBC ABC ABC Interest 80 47 93 46 71 98 75 56 84 75 88 78 TV Viewing 25 22 7 37 13 5 20 27 8 14 7 11 Reading 42 8 80 28 16 70 20 25 32 18 43 17 Network CBS ABC NBC ABC CBS CBS CBS NBC ABC NBC ABC ABC

Answer rating: 100% (QA)

Solution a Obtain the dummy variable The dummy variable is Network Thus ... View the full answer