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Quantitative Techniques For Management Sciences Practice Questions

This document provides three examples of multiple regression analyses and corresponding questions to interpret the results. For each regression, respondents are asked to interpret coefficients, test significance, compute adjusted R-squared, and conduct an overall F-test to evaluate model fit. Respondents must demonstrate understanding of regression output and applying statistical tests to assess whether models and coefficients are meaningful based on economic theory.

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Safi Sheikh
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180 views

Quantitative Techniques For Management Sciences Practice Questions

This document provides three examples of multiple regression analyses and corresponding questions to interpret the results. For each regression, respondents are asked to interpret coefficients, test significance, compute adjusted R-squared, and conduct an overall F-test to evaluate model fit. Respondents must demonstrate understanding of regression output and applying statistical tests to assess whether models and coefficients are meaningful based on economic theory.

Uploaded by

Safi Sheikh
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quantitative Techniques for Management Sciences

Practice Questions

1. Consider the following regression results (t-statistics are in parentheses):

Where,
Y= wife’s annual desired hours of work, calculated as usual hours of work per year plus
weeks looking for work
X2= after-tax real average hourly earnings of wife
X3= husband’s previous year after-tax real annual earnings
X4= wife’s age in years
X5= years of schooling completed by wife
X6= attitude variable, 1= if respondent felt it was alright for a women to work if she desired
and her husband agrees, 0= otherwise
X7= attitude variable, 1= if the respondent’s husband favoured his wife’s working, 0=
otherwise
X8= number of children less than 6 years of age
X9= number of children in age groups 6 to 13

a. Interpret the regression results and discuss whether they make logical sense.
b. Test whether the regression coefficients are statistically significant at the 1% level.
c. Compute the value of adjusted r-squared and comment about the goodness of fit of the
model.
d. Test the overall significance of the regression model using the F-test.
2. The following regression results were used to assess the effect of Federal Reserve’s
policy of deregulating interest rates. The sample data spans for the period of 1975Q3
to 1983Q2.

Where,
Y= 3-month Treasury bill rate
P= expected rate of inflation
Un= seasonally adjusted unemployment rate
M= changes in monetary base
Dum= dummy, taking value of 1 for observations beginning 1979Q3.

a. Interpret the regression results and discuss whether they make logical sense.
b. Test whether the regression coefficients are statistically significant at the 1% level.
c. Compute the value of adjusted r-squared and comment about the goodness of fit of the
model.
d. Test the overall significance of the regression model at the 5% level.

3. Using Stata dataset Table 3.16, estimate a multiple regression to examine the effects
of ban and sugar_sweet_cap on diabetes.
Where,
Diabetes = Diabetes prevalence in the country
Ban= 1 if some type of ban on genetically modified goods is present, 0 otherwise
Sugar_sweet_cap = domestic supply of sugar and sweeteners per capita in Kilograms.

a. Interpret the regression results and discuss whether they make logical sense.
b. Test whether the regression coefficients are statistically significant at the 1%
level.
c. Compute the value of adjusted r-squared and comment about the goodness of fit
of the model.
d. Test the overall significance of the regression model at the 5% level.

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