Metropolitan University, Sylhet

Department of Business Administration

Summer Mid-Term Exam – 2021
Program: BBA
Batch: BBA 47th Batch
Course Title: Basic Econometrics
Course Code: ECO-337
Time – 1 Hour Full Marks: 15
[Answer all the questions]

Question No. 01: Marks 05

You are given three data sets of “income” and “age” of 15 different age groups of people.
Data Set-01 Data Set-02 Data Set-03
Age Income Age Income Age Income
23 25000 27 30000 30 25000
24 20000 28 28000 31 25000
25 22000 29 28000 32 30000
26 25000 30 28000 33 50000
27 33000 31 32000 34 41426
28 37000 32 30000 35 30000
29 35000 33 40000 36 50000
30 45000 34 40000 37 26760
31 22000 35 50000 38 32000
32 37000 36 27000 39 40000
33 22000 37 62000 40 15000
34 40000 38 35000 41 29500
35 50000 39 25000 42 33000
36 39000 40 75000 43 40000
37 55000 41 35000 44 50000
R2=? R2=? R2=?

Required:
i. You are required to draw Regression Lines (average line) for each data set.
ii. Point out maximum residuals and minimum residuals in both positive and negative way.
iii. Which data set/regression line representing good model fit and bad model fit based on
residuals dispersion.
iv. Find out the intercept or constant value from regression line.
Question No. 02: Marks 05
Predict employee performance on given employee job satisfaction, absenteeism, reward system
and salary.
Here you are given,
β0 = Intercept (6.23)
β1 = Slop Coefficient of 1st independent variable employee job satisfaction (2.37)
β2= Slop Coefficient of 2nd independent variable absenteeism (-0.21)
β3 = Slop Coefficient of 3rd independent variable reward system (1.45)
β4 = Slop Coefficient of 4th independent variable salary (0.95)

Data from primary/secondary sources:

X1= 1st Independent Variable/ employee job satisfaction (67 points/scores)
X2= 2nd Independent Variable/ absenteeism score (22 points/scores)
X3= 3rd Independent Variable/ reward system (40 points/scores)
X4= 4th Independent Variable/ salary (28 points/scores)
R2 = Goodness of Model fit 62%
Required:
i. Calculate the regression results.
ii. Explain all the possible results of this regression model or regression equation.
iii. Illustrate the results of R2 and the error terms
iv. Point out the model fit information.

Question No. 03: Marks 5

The coefficient of determination is a measure of the goodness of the regression model fit.
Explain the coefficient of determination using the following variables and their variances
explained. Point out whether the regression model is good model fit and bad model fit based on
R2.

Dependent Variable Independent Variables

Happiness (Y) Money (X1) Love (X2) Fun (X3) Power (X4)
Variance Explained ? 53% 46% 22% 15%
Shared Variance Explained
Money (X1) & Love (X2) 25%
Love (X2) & Fun (X3) 12%
Money (X1) & Power (X4) 5%