Problem: Cigarettes produce appreciable amounts of carbon monoxide. When smoke is inhaled, carbon monoxide combines with hemoglobin to form carboxyhemoglobin. Researchers wanted to determine whether an appreciable concentration of carboxyhemoglobin reduces the exercise tolerance of patients suffering from bronchitis and emphysema. Seven such persons were selected randomly and in a controlled environment were asked to walk for 12 minutes, breathing 1 of 4 gas mixtures: air, oxygen, air plus carbon monoxide, oxygen plus carbon monoxide. The amount of carbon monoxide breathed was sufficient to raise the carboxyhemoglobin concentration of each subject to 9%. To control the intake of carbon monoxide, all of the smokers in the group were asked to stop smoking 12 hours prior to the experiment. The following data are the distances walked by the subjects under each condition in 12 minutes.

1. Why is there a need to block the effect of the subjects?
2. Graph the sample data. Are there any apparent differences in the average distances walked?
3. Use the analysis of variance procedure (ANOVA) to test the null hypothesis of no gas mixture effect on the distance walked.

10.20 I want to determine the extent of an association between amount of insurance Y on the head of household and family income X. If the association is strong, family income may serve as a good indicator of the amount a potential customer might purchase.

The following random sample of 18 was obtained

Fit a simple linear regression model to the data, evaluate the resulting least squares equation (include a residual analysis) and revise it as necessary.

10.28 The following data depict the asset volatility (VOLAT) of a sample of 12 banks and 4 predictor variables: 1. Rate of average market value equity to average book value equity,

(MVE/BVE)2. Average capital to asset ratio (E/A as a percentage)3. Average bid-ask spread as a percentage of share price (BID-ASK), 4. The average market value of bank

assets (MVA in millions of $)

Fit an appropriate regression model and determine which of the listed predictor variables, if any, help to explain the variation in sample asset volatilities.

ss

Price: $19.45

Solution: The downloadable solution consists of 12 pages, 745 words and 13 charts.
Deliverable: Word Document