aianjie

 

The correct answer is C

From the ANOVA table, the calculated t-statistics are (30.22 / 12.12) = 2.49 for GDP and (?412.39 / 183.981) = ?2.24 for fuel prices. These values are both outside the t-critical value at 27 degrees of freedom of ±2.052. Therefore, Baltz is able to reject the null hypothesis that these coefficients are equal to zero, and concludes that each variable is important in explaining sales.

 

aianjie

 

13、Baltz proceeds to test the hypothesis that none of the independent variables has significant explanatory power. He concludes that, at a 5% level of significance:

A) at least one of the independent variables has explanatory power, because the calculated F-statistic exceeds its critical value. 

B) all of the independent variables have explanatory power, because the calculated F-statistic exceeds its critical value. 

C) none of the independent variables has explanatory power, because the calculated F-statistic does not exceed its critical value. 

D) at least one of the independent variables has explanatory power, because the calculated F-statistic does not exceed its critical value. 

aianjie

 

The correct answer is A

From the ANOVA table, the calculated F-statistic is (mean square regression / mean square error) = 145.65 / 4.89 = 29.7853. From the F distribution table (2 df numerator, 27 df denominator) the F-critical value may be interpolated to be 3.36. Because 29.7853 is greater than 3.36, Baltz rejects the null hypothesis and concludes that at least one of the independent variables has explanatory power.

 

aianjie

 

The correct answer is D

The formulas are both correct, and it is not necessary to adjust for degrees of freedom

 

aianjie

 

12、Werner Baltz, CFA, has regressed 30 years of data to forecast future sales for National Motor Company based on the percent change in gross domestic product (GDP) and the change in price of a U.S. gallon of fuel at retail. The results are presented below. Note: results must be multiplied by $1,000,000:

Coefficient Estimates
< > td>	< > td>	< > td>
< > td>	< > td>	Standard Error
Predictor	Coefficient	of the Coefficient
Intercept	78	13.710
?1 GDP	30.22	12.120
?2$ Fuel	?412.39	183.981

 

Analysis of Variance Table (ANOVA)
< > td>	< > td>	< > td>	< > td>
Source	Degrees of Freedom	Sum of Squares	Mean Square
Regression		291.30	145.65
Error	27	132.12
Total	29	423.42	< > td>

In 2002, if GDP rises 2.2% and the price of fuels falls $0.15, Baltz’s model will predict Company sales in 2002 to be (in $ millions) closest to:

A)    $128.

B)    $82.

C)   $206.

D)   $254.

aianjie

 

The correct answer is D

Sales will be closest to $78 + ($30.22 × 2.2) + [(?412.39) × (?$0.15)] = $206.34 million.

 

aianjie

 

The correct answer is C

A researcher cannot make inferences about the independent variables from observed values of the dependent variable.

 

aianjie

 

11、John Conner, FRM and Chris Bond, FRM are planning to compute the coefficient of determination from a regression analysis. Conner asserts the following formula is appropriate for a two-variable regression, but it will have to be adjusted for degrees of freedom when additional variables are added to the equation: .

Bond asserts that the following formula is appropriate, and it does not have to be adjusted for degrees of freedom: .

What, if any, error have the analysts made in their assertions?

A) There are no errors in the assertions.

B) Bond’s formula has an error, but Bond is correct in that it does not have to be adjusted for degrees of freedom.

C) Conner’s formula has an error, but Conner is correct in that it must be adjusted for degrees of freedom.

D) Conner’s formula is correct, but Conner is not correct in asserting that it must be adjusted for degrees of freedom.

aianjie

 

What is the calculated F-statistic?

A) 12.2700.

B) 92.2840.

C) 1,032.1717.

D) 0.1250.

aianjie

 

The correct answer is A

The computed value of the F-Statistic = MSR/MSE = 12,665.12576 / 1,032.17178 = 12.27, where MSR and MSE are from the ANOVA table.