SCHOOL OF ECONOMICS AND FINANCE
VICTORIA UNIVERSITY
SEMESTER 2, 2010
BEO2254 STATISTICS FOR BUSINESS AND MARKETING
Assignment3
15 marks
Due in Week 12
Part a
The file Data 3A_澳洲代写Assignment 3_1.xls contains 100 observations from a random sample of family houses sold in the rural area for one year. Use this data file to complete Part A. The variables included are:
The variables are:
PRICE Selling price of home in dollars
BEDROOMS Number of bedrooms in the home
BATHROOMS Number of bathrooms in the home
OTHER ROOMS Number or rooms in the home other than bedrooms and bathrooms
LOCATION Rating of the location (1= the worst, 5=the best)
CONDITION Rating of the condition of the home (1= the worst, 5=the best)
Note that LOCATION and CONDITION are two categorical variables and four dummy variables for each of these categorical variables are included in the data file. LOCATION 1 and CONDITION 1 are considered as the base level.
(1) Using OLS, estimate the model:
PRICE = 0 + 1 BEDROOMS + 2 BATHROOMS + 3 OTHER ROOMS + 4 L2 + 5 L3 + 6 L4 + 7 L5 + 8 C2 + 9 C3 + 5 C4 + 5 C5 + ε
(2) Use the adjusted R2 and CV to evaluate the goodness of fit of the model.
(3) What are the a priori signs of the coefficients based on your experience or theories and are they the same as the signs of the estimated coefficients from the model in the SPSS output?
(4) Interpret the estimated coefficients of the model and discuss their sig values.
(5) You have been asked to predict the average price of a home with 4 bedrooms, 2 bathrooms, 2 other rooms, a location rating of 3, and a condition rating of 4.
(6) Is there any evidence that the regression might have problems associated with multi-collinearity, heteroskedasticity or non-normality of the regression residuals?
澳洲代写Assignment Part b
The file Data 3B_Assignment3.xls contains 180 observations from a hypothetical random sample of persons over the age of 18 who are in full-time or part-time employment. The survey deals with whether or not people subscribe to magazine and their attitudes towards magazine subscription.
The variables are:
Subscriber 1 if the person is a magazine subscriber, 0 otherwise
Age age in years
Income person’s annual earnings in $K
15012858052
153688106
