Multiple Regression”: Exercises 17.39, and 17.42

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Multiple Regression”: Exercises 17.39, and 17.42

17.39  Refer to Exercise 17.16. Calculate the correlation between the father’s and the mother’s years of education. Is there any sign of multicollinearity? Explain.

17.16  GSS2012* How does the amount of education of one’s parents (PAEDUC, MAEDUC) affect your education (EDUC)?

  a. Develop a regression model

  b. Test the validity of the model

  c. Test the two slope coefficients

  d. Interpret the coefficients

17.42  Refer to Exercise 17.20.

  a. Calculate the correlation matrix.

  b. Are there signs of the presence of multicollinearity? Explain.

  c. Test the correlation between each independent variable and the dependent variable. Which independent variables are linearly related to the dependent variable?

17.20 GSS2008* Use the General Social Survey of 2008 to conduct a regression analysis of income (INCOME) using the following dependent variables:

    • Age (AGE)
    • Years of education (EDUC)
    • Hours of work per week (HRS)
    • Spouse’s hours of work (SPHRS)
    • Occupation prestige score (PRESTG80)
    • Number of children (CHILDS)
    • Number of family members earning money (EARNRS)
    • Years with current employer (CUREMPYR)

  • “Time-Series Analysis and Forecasting”: Exercises 20.19 and 20.35

20.19 Xr20-932 Plot the following time series to determine which of the trend models appears to fit better.

Period  1  2  3  4  5

Time Series  55  57  53  49  47

Period  6  7  8  9  10

Time Series  39  41 33  28  20 

20.35 The following trend line and seasonal indexes were computed from 4 weeks of daily observations. Forecast the 7 values for next week.  ŷ = 120 + 2.3t  t = 1, 2, … , 28

Day  Seasonal Index

Sunday  1.5

Monday  .4

Tuesday  .5

Wednesday  .6

Thursday  .7

Friday  1.4

Saturday  1.9 

Submit your answers in a Microsoft Excel workbook, with each problem on a separate worksheet. Label each tab in the workbook with the exercise number. Highlight the answers in yellow and provide an interpretation in a text box.