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1- Which of the following statements are true? a.In the balance vs. income * stu

ID: 2945915 • Letter: 1

Question

1- Which of the following statements are true?

a.In the balance vs. income * student model plotted in the fig, the estimate of beta3 is negative.

b.One advantage of using linear models is that the true regression function is often linear.

c.If the F statistic is significant, all of the predictors have statistically significant effects.

d.In a linear regression with several variables, a variable has a positive regression coefficient if and only if its correlation with the response is positive.

2 - According to the balance vs ethnicity model from the credit card data in the figures,

a) what is the predicted credit card balance for an Asian in the data set? (within 0.01 accuracy)

b) What is the predicted credit card balance for an African American? (within .01 accuracy)

8- student non-student 100 150 50 100 150 50 Income Income Credit data; Left: no interaction between income and student. Right: with an interaction term between income and student.

Explanation / Answer

1- Which of the following statements are true?

a.In the balance vs. income * student model plotted in the fig, the estimate of beta3 is negative.

From scaterplot it is positive .SO THIS IS FALSE

b.One advantage of using linear models is that the true regression function is often linear.

FALSE,IT CAN BE LOGISTIC ALSO

c.If the F statistic is significant, all of the predictors have statistically significant effects.

FALSE.

for some variables p<0.05 and some vvariable p>0.05

F is sgnfcan t

d.In a linear regression with several variables, a variable has a positive regression coefficient if and only if its correlation with the response is positive

TRUE

if correlation coeff is positive slope is positive

if correlation coefficient is negative slope is negative

Solution2:

2 - According to the balance vs ethnicity model from the credit card data in the figures,

a) what is the predicted credit card balance for an Asian in the data set? (within 0.01 accuracy)

from regression output we have

balance=531-18.69*asian-12.50*caucasian

Given

it asian asian=1

caucasiaon=0

balance=531-18.69*1-12.50*0

balance=512.31

ANSWER:512.31

b) What is the predicted credit card balance for an African American? (within .01 accuraracy)

African American=caucasian=1

balance=531-18.69*0-12.50*1

balance=518.5

ANSWER:518.5