1. Consider the following data set and the Minitab output. Derive (i.e., calculate) each number that has a circle around it. Show all of your work in complete detail.
   
2. Consider the following data set. C1 is years of education, C2 is years of job experience, C3 is age, and C4 is annual salary.

Estimate the relationship:

\(C 4=a+b(C 1)+c(C 2)+d(C 3)\)

Test whether education is significant at the \(5 \%\) level.

Test the hypothesis that the entire model explains a significant amount of variation in the dependent variable at the \(5 \%\).

Find a \(95 \%\) confidence interval estimate of the salary of a person with 14 years of education, 10 years of experience, and who is 31 years old.

Problem 3: Consider the following data on salaries and experience. Variable \(\mathrm{C} 1\) is Salary and \(\mathrm{C} 2\) is Experience. Person 2,4,6,8, and 9 have MBA degrees from DePaul. All of the others have MBAs from Loyola.

Calculate the regression of salary on experience within a model that controls for the school that granted the degree. Be sure to print the entire data set that allows you to estimate the regression.

Graph the estimated regression equation and clearly indicate the impact of a DePaul MBA on the graph.

What is the market value of a DePaul MBA relative to a Loyola MBA? Is it statistically significant at the \(5 \%\) level? Show your work.

4. Consider the following data set for an office structure built by Anderson Construction Co. The completed building is nine stories. However, construction was interrupted by a fire after 5.3357 floors were completed. At the time of the fire, Anderson had used 54,067 hours of labor to construct the first 5.3357 stories of the building. It then took Anderson an additional 40,750 labor hours to complete this nine-story building.

In this problem, FLRCOM is the number of floors completed, and HOURS is cumulative labor hours to complete the number of floors given by FLRCOM.

Enter the data for FLRCOM and HOURS in Minitab and use one command to create a variable which is the square of FLRCOM. Call this new variable FLRCOMSQ. Print HOURS, FLRCOM, and FLRCOMSQ.

Test whether there is a nonlinear relationship between HOURS and floors completed in the equation:

\(\text { HOURS }=a + b(FLRCOM)+c(FLRCOMSQ)\)

Graph the foregoing equation. Where does it reach a maximum?

Assume that the fire caused construction to slow down and caused a reduction in efficiency in completing the building. Estimate the number of labor hours needed to complete the building if there were no slow down related to the fire. Assume that the relationship that existed between FLORCOM and HOURS before the fire would have continued to exist to the completion of the building had the fire not occurred.

Estimate the extra labor hours traceable to the fire. Finally, calculate a 50% confidence interval estimate for hours if there were no fire (i.e., calculate an interval for hours to within a reasonable degree, to use a legal term, "of statistical certainty").

5. Each observation in the following data set shows a person's income and whether that person purchased a particular product last year. Assign a zero for a No purchase and a 1 for a Yes, and estimate a logit model for the purchase of this product. Write down the estimated logit model; and calculate the probability of buying the product if income is $40,000 and if income is $70,000.

6. Assume that returns are normally distributed with a mean return of .20 per year and a standard deviation of .10. Suppose you check on your returns once a week. What is the probability that your return is positive for the week? We define the ratio of noise to performance as the coefficient of variation (the ratio of the standard deviation to the mean). Calculate the number of parts of noise per part performance if you check your returns once a week. In this problem, you can assume that weekly returns are independent of each other.

7. The Mega Millions game consists of drawing five numbers from the integers \(1,2,3, \ldots, 52\) (without replacement). Then a special number, a sixth number, is selected from a new set of numbers 1,2,3...52. A winning player must have selected the correct five numbers from the first set and the correct number from the second set. You get one set of six numbers for a $1 bet. What is the probability of winning the Mega Millions game if you make a $1 bet? If $200 million is wagered by individual betters, what is the probability there will be no winners? What is the probability of 2 or fewer winners? What is the expected number of winners? What is the standard deviation for the number of winners? Use the Excel BINOMDIST to confirm your answer. Attach the Excel output to your answer. BINOMDIST is found under the Statistical functions in Excel.

10. Find the coordinates of all extrema of the function \(y=f(x)=x^{3}-12 x^{2}+36 x+8\). Sketch a graph of this function using Excel. In Column \(A\), start \(x=-1\) and let \(x\) increase

Price: $35.14

Solution: The downloadable solution consists of 20 pages, 1514 words and 19 charts.
Deliverable: Word Document