Question 1 Assignment: Data needed for questions 3-7 at bottom of page:

In a regression analysis with multiple dependent variables, multicollinearity can be caused by:

A strong nonlinear relationship between the dependent variable and one or more independent variables.

A strong heteroskedastic relationship between the dependent variable and one or more independent variable.

A strong linear relationship between two or more independent variables.

None of the above.

Question 2

Market researcher Ally Nathan is studying the relationships among price, type (classical or steel string), and consumer demand for acoustic guitars. She wants to find the relationship between demand and price, controlling for type.

To determine this relationship, she should

Run a simple regression of the dependent variable demand on the independent variable price and observe the coefficient on price.

Run a simple regression of the dependent variable demand on the independent variable type and observe the coefficient on type.

Run a multiple regression of the dependent variable demand on the independent variables price and type and observe the coefficient on type.

Run a multiple regression of the dependent variable demand on the independent variables price and type and observe the coefficient on price.

Question 3

The regression analysis relates US annual energy consumption in trillions of BTUs to the independent variable “US Gross Domestic Product (GDP) in trillions of dollars”.

The coefficient on the independent variable tells us that:

For every additional dollar of GDP, average energy consumption increased by 3,786 trillion BTUs.

For every additional trillion dollars of GDP, average energy consumption increased 3,786 BTUs.

For every additional trillion BTUs of energy consumption, average GDP increased by $3,786 trillion.

For every additional trillion dollars of GDP, average energy consumption increased by 3,786 trillion BTUs.

Question 4

The regression analysis relates US annual energy consumption in trillions of BTUs to the independent variable “US Gross Domestic Product (GDP) in trillions of dollars”.

Which of the following statements is true?

The y-intercept of the regression line is 62,695 trillion BTUs.

The x-intercept of the regression line is $62,695 trillion.

In the event that a thermonuclear war completely halts all economic activity and the US GDP drops to zero, energy consumption will sink to 62,695 trillion BTUs.

None of the above.

Question 5

The regression analysis relates US annual energy consumption in trillions of BTUs to the independent variable “US Gross Domestic Product (GDP) in trillions of dollars”.

In a given war, if GDP is $7.4 trillion, expected energy consumption is:

Around 91,501 trillion BTUs

Around 90,711 trillion BTUs

Around 28,016 trillion BTUs

Around 467,729 trillion BTUs.

Question 6

The regression analysis relates US annual energy consumption in trillions of BTUs to the independent variable “US Gross Domestic Product (GDP) in trillions of dollars”.

How much of the variation in energy consumption can be explained by variation in the gross domestic product?

About 99.99%

About 97%

About 94%

Almost none of the variation in energy consumption can be explained by variation in GDP.

Question 7

The data table at the bottom of the page tabulates a pizza paror’s advertising expenditures and sales for 8 consecutive quarters. The marketing manager wants to know how much of an impact current advertising will have on sales two quarters from now.

While running a regression with the dependent variable “sales” and the independent variable “advertising lagged by two quarters”, how many data points can she use, given the available data?

6

7

8

9

For questions 3 through 6:

Year GDP

(in $trillions) Car Gas Mileage (in mpg) Energy Consumption

( in trillions of BTU)

1980 2.796 16 78,435

1981 3.131 16.5 76,569

1982 3.259 16.9 73,441

1983 3.535 17.1 73,317

1984 3.933 17.4 76,972

1985 4.213 17.5 76,705

1986 4.453 17.4 76,974

1987 4.743 18 79,481

1988 5.108 18.8 82,994

1989 5.489 19 84,926

1990 5.803 20.2 84,567

1991 5.986 21.1 84,640

1992 6.319 21 86,051

1993 6.642 20.5 87,780

1994 7.054 20.7 89,571

1995 7.401 21.1 91,501

1996 7.813 21.2 94,521

1997 8.318 21.5 94,969

1998 8.782 21.6 95,338

1999 9.274 21.4 96,968

US Energy Consumption (in trillion BTUs)

vs. Gross Domestic Product ($trillions)

Regression Statistics

Multiple R 0.9709

R2 0.9426

Adjusted R2 0.9394 F test results

Standard Error 1,889 F value Signif. F

Observations 20 295.51 0.0000

Coefficients Std Error t Stat P-value

Intercept 62,695 1,325 47.31 0.0000

GDP ($trillions) 3,786 220 17.19 0.0000

For Question #7:

Quarter Sales (in $) Advertising (in $)

Qtr 1, 2001 523,000 88,000

Qtr 2, 2001 512,000 84,000

Qtr 3, 2001 528,000 92,000

Qtr 4, 2001 533,000 92,000

Qtr 1, 2002 540,000 96,000

Qtr 2, 2002 540,000 95,000

Qtr 3, 2002 538,000 93,000

Qtr 4, 2002 541,000 98,000

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.