Question

5) In a regression model developed to estimate cruise vacation prices, two recorded independent variables were: ship Size (sqft) and ship Capacity (number of people). A correlation analysis yielded the following table: Size Capacity Size Capacity 0.88091 a. There is a high positive correlation between ship Size and ship Capacity. b. Each variable is perfectly correlated with itself. c. One of these two variables should be excluded from the regression model to avoid multicollinearity. d. All of the above statements are correct. 6) A personal trainer wants to study the effectiveness of three different diet programs, labeled A, B and C. In an experimental setting, he assigns twelve trainees to each of the three programs. Data on weight lost (in lbs) from each training program and the trainees' ages were collected. The Excel regression output is shown below. a) What is the predicted weight loss of a 30-year old person who follows diet A? b) What is the difference in effectiveness (i.e., expected weight loss) between diet A and diet C, holding age constant? c) How much of the variability in weight loss is explained by the regression model? d) Which variable (if any) is not significant at the 0.05 level? Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.8854 0.784 0.7637 6.0352 Intercept Age Coefficients 22.29 0.6645 10.2528 0.4452 Standard Error 3.505097293 0.06978447 2.465423047 2.463989188 Staf 6.359478416 9.521611826 4.158619979 0.180674408 P-value 3.84948E-07 7.41826E-11 0.000223831 085776257 Page 2

Answer 1

5) Option a

6) a) 52.4778

b) 9.8076

c) 78.4%

d) B

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