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For this problem we will be working with the Ericksen data set for describing the percentage of the population not counted in the US Census from 1980. In this data set we have different sociological variables and a factor saying whether the data point is a major city, state, or remaining part of the state. You should use the help file to help you understand all the variables. Using the regression techniques we have learned in this course use the rest of the covariates to describe the variable undercount. In 3 pages or less (including plots) explain the process you used, decisions you made to result in your final model. You should also give some insight to what your model says about describing the undercount of the 1980 Census. Describe the advantage of the model you fit in terms of the problem (does it predict well, is the inference there, or both). The largest model that can be understood in this data is the second order model. Finally compute a confidence interval for Minnesota and a prediction interval for West Virginia using your model. In an appendix attach the R summary of your final model and diagnostic plots.
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The assignment requires a significant part of the work to be done in a spreadsheet. I have not nominated any particular vendoar or any particular version. The choice is up to you,
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Assume that you are the president of Gaslight company. At the end of the year (December 31, 2011 of operation.
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A company is considering investing some independent proposals, The proposals with their expected net present values and standard deviations are given in the following table.
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