Name:

Date:

HUL315: Quiz 6

Dependent variable: Ozone

(1) (2) (3)
∗∗∗ ∗∗∗
Temp 1.652 1.896 1.883∗∗∗
(0.254) (0.274) (0.278)

Month −3.040∗∗ −2.969∗

(1.513) (1.526)

Day of Week 0.274 0.247

(0.230) (0.234)

Traffic index 1.921

(2.210)

Cigarettes sales −0.693

(1.955)

Wind −3.334∗∗∗ −3.318∗∗∗ −3.229∗∗∗

(0.654) (0.645) (0.658)

Solar.R 0.060∗∗ 0.050∗∗ 0.050∗∗

(0.023) (0.023) (0.024)

Constant −64.342∗∗∗ −64.116∗∗∗ −63.872∗∗∗

(23.055) (23.482) (23.811)
Observations 111 111 111
R2 0.606 0.625 0.628
Adjusted R2 0.595 0.607 0.602
F Statistic 54.834∗∗∗ (df = 3; 107) 34.991∗∗∗ (df = 5; 105) 24.818∗∗∗ (df = 7; 103)
∗ ∗∗ ∗∗∗
Note: p<0.1; p<0.05; p<0.01

Question 1: State Whether True or False (4 points)

a Model (1) is preferred to Model (2) since the associated F-statistic is larger.

b Model (3) is preferred to Model (2) since the associated R2 value is higher.

2 value is higher.
c Model (2) is preferred to Model (3) since the associated Radj

d Model (1) is preferred to Model (2) since all its parameter estimates are significant.
Question 2: Answer the following (6 points)

a For Model (1) write out the population model and the predicted regression model.

b For Model (2) interpret the parameter estimate associated with Wind.

c Which of the three models would you select as your best model? Why?