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John Smith did not report how much he smokes. We know only his values of the exp

ID: 3236781 • Letter: J

Question

John Smith did not report how much he smokes. We know only his values of the explanatory variables in Model 1: price =100, income = 30, dadeduc = 12, momeduc = 12. We regressed the dependent variable smoke to transformed explanatory variables: dprice = price - 100, dincome = income - 30, ddadeduc = dadeduc -12, and dmomeduc = momeduc - 12. The results are: i. Give the point predictor of smoke for John Smith. ii. Give the 95% confidence interval predictor of E(smoke) for John Smith. iii. Give the 95% confidence interval predictor of smoke for John Smith.

Explanation / Answer

Part-i

Point prediction for John Smith

yhat=2.312461+0.0140*(100-100)-0.0203*(30-30)-0.1014*(12-12-0.3443*(12-12)

yhat=2.312461

Part-ii

For 95% confidence interval ,degree of freedom error=1195-4-1=1190 and critical t=1.96

95% confidence interval =yhat± t(0.05,1190)*se*sqrt(1/n+(x0-xbar)2/(n-1)sx2)

=2.312461±1.96*5.20652*sqrt(1/1195+0),as all predictors measured at mean

=(2.017258752            2.607663248)

For 95% prediction interval ,degree of freedom error=1195-4-1=1190 and critical t=1.96

95% prediction interval =yhat± t(0.05,1190)*se*sqrt(1+1/n+(x0-xbar)2/(n-1)sx2)

=2.312461±1.96*5.20652*sqrt(1+1/1195+0),as all predictors measured at mean

=( -7.896587089         12.52150909)

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