homw11

BUS 310, Homework #11, Spring 2018 Instructor: Betsy McCall

Instructions: Complete each problem on a separate worksheet in a single Excel file. Rename the separate worksheets with the respective problem number. You may have to copy and paste the datasets into your homework file first. Name the file with your last name, first initial, and HW #11. Label each part of the question. When calculating statistics, label your outputs. Submit your completed file in Blackboard. If no significance level is specified, assume 5%.

1. The file 310homework11data.xlsx, problem #1 data contains midterm and final exam data for 96 students in a corporate finance course. Each row contains the two exam scores for a given student. Based on a regression equation, for the final exam score as a function of the midterm score, find a 95% confidence interval for the slope of the population regression line. State exactly what this confidence interval indicates.

2. Based on data in the file 310homework11data.xlsx in Problem #2 from the US Department of Agriculture, explore the relationship between the number of farms (x) and the average size of farms (y) in the United States.

a. Use the given data to estimate a simple linear regression model.

b. Test whether there is sufficient evidence to conclude the slope of the parameter is less than zero. Use a 5% significance level.

c. Based on your finding in b, is it possible to conclude that a linear relationship exists between the number of farms and the average farm size during the given time period? Explain.

3. The file 310homework11data.xlsx in Problem #3 contains salaries for a sample of DataCom employees, along with several variables that might be related to salary. Run a multiple regression of Salary vs. Years employed, Years Education, Gender, Number Supervised. For each of these variables, explain exactly what the results in the coefficient, standard error t-value and P-value columns mean. Based on these results, can you reject the null hypothesis that the population coefficient of any of these variables is zero versus a two-tailed alternative at the 5% level? If you can, what would you probably do in the next analysis?