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In a study relating college grade point average to time spent in various activities, students are asked how many hours they spend each week in four activities: studying, sleeping, working, and leisure. Any activity is put into one of the four categories, so that for each student the sum of hours in the four activities must be 168. The regression model is given by
GPA = β0 + β1study + β2sleep + β3 work + β4 leisure +u
a) Does it make sense to hold sleep, work, and leisure fixed while changing study? Why or why not?
b) Explain why this model violates the assumption of no perfect collinearity.
c) How could you reformulate the model so that its parameters have a useful interpretation and it satisfies the no perfect collinearity assumption?
Problem: a) In what circumstances would you apply switching models? b) Using dummy variables for seasonality show how you would test for January effects in financial data?
how to regress
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Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.
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The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P) company''s index of 500 common stock prices. Year CPI Index S&P 500 Index 1978 65.2 9
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goldfield quandt test solution
A thick walled cylinder has internal and external diameters of 120 mm and 420 mm respectively. It is made from a ductile elastic material of your choice and is used to contain hot
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