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BA 578: Fall 2012

Page 1 of 20

Name: _______________________

ID: _______________________

FINAL EXAM

** Two different ways to submit your answer sheet**

(i)

Scan your answer sheet and place it in ONE FILE at the drop - box.

(Preferable)

(ii)

Use MS-Word and place it in a drop-box.

*No One is allowed to use computer or any software, EXCEPT when instructed*

******Deadline: Monday 10th of December 2012 by noon******

**All work must be shown (step by step) in order to receive credit**

1. You are given the following data on sales (in tens of thousands of dollars) and

advertising expenditure (in thousands of dollars):

Sales, Y

Advertising expenditures, X

31

5

40

11

25

3

30

4

20

3

a. Calculate the regression equation of sales on advertising expenditures.

26

5

BA 578: Fall 2012

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b. Construct a 95% confidence interval for the mean value of Y if X =9.

c. Use a 5% level of significance and test

BA 578: Fall 2012

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d. Predict sales if $6,000 is spent on advertising.

e. Calculate a 95% confidence interval for the individual value of Y if X = 6.

2. Suppose a statistician obtained the following estimated regression model

where is a dummy variable indicating the gender of the ith individual and =1 if the

individual is a male. Suppose another statistician estimated the model using the same data

but defined

if the individual is female.

a. What would happen to the constant term?

BA 578: Fall 2012

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b. What would happen to the coefficient of

c. What would happen to the coefficient of

?

?

3. Fill in the missing values in following ANOVA table

Source

Factor

Error

Total

df

5

SS

MS

205.5

F

637

25

Answer

a. In the above ANOVA table, is the factor significant

at 5% level of significant?

4. Fill in the missing values in following ANOVA table

Source

Factor

Error

Total

df

2

17

SS

MS

3.24

40.98

Answer...