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
Page 2 of 20
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
Page 3 of 20
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
Page 4 of 20
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...