Consider the regression model: In(OVERALL) = P + B ln(PALATE) + P3 In(APPERANCE) + BIBU+ B,...

 

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Consider the regression model: In(OVERALL) = P + B ln(PALATE) + P3 In(APPERANCE) + BIBU+ B, ABV + e. (2) (a) Estimate equation (2) and report the regression results. (b) Interpret the estimated coefficients: b, b and b. (3 Marks) (6 Marks) (c) Compute the variance of the residual (e) series. (3 Marks) (d) Compute the slope corresponding to the variable IBU based on the equation estimated in (a). (3 Marks) (e) Using the model estimated in (a), test the hypothesis, at the 5% level of significance, that the average rating scores for the palate and appearance have the same effect on the average overall rating scores. Clearly present the test statistic. Clearly present the restricted model. (6 Marks) (f) Using a confidence interval approach, test the hypothesis that a unit increase in IBU reduces the overall rating by one percent at the 10% level of significance. (6 Marks) (g) Using the model estimated in (a), test the hypothesis, at the 1% level of significance, that higher alcohol content of the beer reduces its overall rating. (5 Marks) (h) Examine the overall significance of the model estimated in (a) at the 1% level of significance. Clearly present the test statistic. Clearly present the restricted model. (5 Marks) (i) Find and interpret the goodness of fit measure. (3 Marks) Activa Go to Se Consider the regression model: In(OVERALL) = P + B ln(PALATE) + P3 In(APPERANCE) + BIBU+ B, ABV + e. (2) (a) Estimate equation (2) and report the regression results. (b) Interpret the estimated coefficients: b, b and b. (3 Marks) (6 Marks) (c) Compute the variance of the residual (e) series. (3 Marks) (d) Compute the slope corresponding to the variable IBU based on the equation estimated in (a). (3 Marks) (e) Using the model estimated in (a), test the hypothesis, at the 5% level of significance, that the average rating scores for the palate and appearance have the same effect on the average overall rating scores. Clearly present the test statistic. Clearly present the restricted model. (6 Marks) (f) Using a confidence interval approach, test the hypothesis that a unit increase in IBU reduces the overall rating by one percent at the 10% level of significance. (6 Marks) (g) Using the model estimated in (a), test the hypothesis, at the 1% level of significance, that higher alcohol content of the beer reduces its overall rating. (5 Marks) (h) Examine the overall significance of the model estimated in (a) at the 1% level of significance. Clearly present the test statistic. Clearly present the restricted model. (5 Marks) (i) Find and interpret the goodness of fit measure. (3 Marks) Activa Go to Se

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Here is the stepbystep solution for the regression problem a Estimate equation 2 and report the regression results lnOVERALL 2 lnPALATE 3 lnAPPEARANCE IBU ABV e Regression Results Coefficient Estimate ... View the full answer