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1. An analysis of the effect of advertising on consumer price sensitivity is carried out. The log of the quantity purchased (ln q), the dependent variable, is run against the log of an advertising-related variable called RP (the log is variable ln RP ). An additive error term E is included in the transformed regres- sion. What assumptions about the model relating q and RP are implied by the transformation?
2. The following regression model is run.
log Y = 3.79 + 1.66X1 + 2.91X 2 + log e
Give the equation of the original, nonlinear model linking the explanatory variables with Y.
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A linear regression between Y and X produced the following equation for the least squares line:
Suppose that network breakdowns occur randomly and independently of each other on an average rate of three per month. (a) What is the probability that there will be just one network breakdown during December? Interpret.
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he number of reservations for its January flight to Germany, 305 reservations for tourist class,185 Economy class, and 206 first class. To fill all the seats how many of each kind of plane should the company fly?
If 3 different factor levels show a lot of variation between levels this implies:
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