GARDEN CITY UNIVERSITY COLLEGE, KUMASI.

SCHOOL OF BUSINESS STUDIES

BSc. Economics and Statistics

Second Semester Examination, 2016

STA 202: REGRESSION ANALYSIS

May, 2016 TWO AND HALF HOURS

INDEX NUMBER:--------------------------------------------------------------------------------------------

Answer all questions.

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 1. The table below gives the household income in thousands of dollars, x, and cost of filing
federal taxes in dollars, y, for 20 randomly selected federal taxpayers.

x y x y
17.5 35.0 28.0 75.0
37.5 60.5 22.5 70.0
47.5 88.5 25.0 60.0
25.0 70.5 29.5 65.0
55.5 125.0 65.0 150.0
35.0 63.0 51.0 100.0
15.5 30.0 39.3 75.0
12.0 30.0 33.0 40.0
32.0 65.0 45.0 75.0
42.3 80.0 75.0 200.0

Use the above information to answer all questions bellow.

S xx , S xy , S yy , b1 and b0
Find the following: . [7 marks]
a.

b. Compute the residual and the error sum of squares SSE. [8marks]

c. Find S the standard deviation of the error term and the total sum of squares SST.

[5marks]

2. Using the data in the table in question one above, answer the questions below.

a. Test the
  0.05 hypothesis that the slope of the line in the population regression
model is equal to 0 using level of significance. [7marks]

b. Find a 95% confidence interval for the bo. [7marks]

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 c. Hence find the regression sum of squares SSR and the coefficient of determination r2.

[6marks]

3. Define the following in relation to regression analysis

a. Error Sum of Squares. [5 marks]

b. Total Sum of Squares. [5 marks]

c. Regression Sum of Squares. [5 marks]

d. Coefficient of Determination. [5 marks]

4. The table below gives the real per capita income in U. S. dollars Y with the percentage of
the labor force in agriculture X1, and the average years of schooling of the population
over 25 years of age X2 for 15 developed countries in 1981.

n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Y 76 10 44 47 23 19 13 19 8 44 4 31 24 59 37
X1 6 16 9 8 14 11 12 10 18 5 26 8 8 9 5
X2 97 92 85 96 91 83 93 81 74 93 67 92 94 97 93

a. Find the least squares regression equation of Y, X1, and X2. [10 marks]
b. Find the standard errors of estimates. [5marks]
c. Find the coefficient of multiple determination. [5marks]

5. a. What is the use of partial-correlation coefficients? [5marks]

b. Find the partial-correlation coefficients in question 4. [10 marks]

c. Does X1 or X2 contribute more to the explanatory power of the model in question

4? [5marks]

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E. Mensah-Eduful