Question

QUESTION 18 13)-19) A company analyst in interested in the relationship between number of cars sold per month in 1,000) and three independent variables: price per gallon of gasoline X1.Gas, in the prevailing interest rate for car loans 02 Interest, in %), and the car model 03-model, with X3.1, if the car is standard, and X3.0, if the car is luxury). He took a sample of 50 observations and obtained the following output Coefficients Standard Errort Star P-value Intercept 96,0744 10.0080 5.60 0.0001 GAS-16.1436 9.3158 -1.73 0.0927 INTEREST -2.3322 0.3624-6.43 0.0001 MODEL 14.4222 1.5869 9.09 0.0001 to The 99% confidence interval estimate for the slope of INTEREST is from 0 -3.3060 to -1,3584 1.3584 to 33080 0 -3.2672 to - 1.3972 0 -3.2057 to -1 4587 QUESTION 19 13)-19) A company analyst is interested in the relationship between number of cars sold per month in 1,000) and three independent variables: price per gallon of gasoline (1=Gas, in $), the prevailing interest rate for car loans Interest, in %), and the car model 03=model, with X3=1, the car is standard; and X3-0, if the car is luxury). He took a sample of 50 observations and obtained the following output: Coeffcients Standard Errort Stat P-value Intercept 96.0744 10.0080 5.60 0.0001 GAS-16.1436 9.3158 -1.73 0.0927 INTEREST -2.3322 0.3624-6.43 0.0001 MODEL 14.4222 1.5869 9.09 0.0001 w we want to test whether the coefficient on GAS is significantly different from o. What is the value of the relevant tout statistical ? 9.3158 9.00 -1.73 0.0927

Answer 1

Result:

Question 18.

Degrees of freedom = 46

Critical t at 99% level with 46 df = 2.687

Lower limit= β-t*se = -2.3322-2.687*0.3624 = -3.3059688

upper limit= β+t*se = -2.3322+2.687*0.3624 = -1.3584312

The correct option is -3.3060 to -1.3584

Question 19.

Test statistic for GAS :   -1.73

( from the output given)