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日期:2019-04-19 10:29

This assignment is worth 15% of your assessment for this subject. The assignment is

due with your tutor by 5pm Monday April 29th. Please hand in a hard copy of the

assignment to your tutor by the due date with the appropriate Monash coversheet.

Question 1.

Using the data set “Restaurant.xls” to answer the following questions.

1. Plot the relationship between meal prices and wait time using a scatter plot.

Comment on any relationship. [3 Marks]

2. Plot the relationship between meal prices and wait time using a scatter plot,

conditional on a meal being good. Then plot the same relationship conditional on a

meal being excellent. Comment on the similarities and differences between the

plots. [6 marks]

3. Construct a dummy variable for “Quality Rating” with a value of 1 if the meal was

excellent and a value of zero else. Call this variable “Quality”. Run a linear

regression of Quality on the wait time and meal price. Answer the following

questions using this output.

i.) Interpret the model ?

2

. [2 marks]

ii.) Test the hypothesis that wait time is positively related to meal quality using the

critical value approach. [6 marks]

4. Analyse the residuals of the above regression. Does there appear to be any

relationship between the residuals and the regressors? If so, describe the

relationship and comment on what might be behind this pattern. [4 marks]

Question 2

Use the data set “Data_Ass2_S1_2019.xls” to answer the following questions.

1. Calculate the correlation matrix for the regressors in the data (the X variables in

the data). Comment on any significant correlations. [4 marks]

2. Run a regression of Y on 3and answer the following questions.

i.) State the fitted regression model. [3 marks]

ii.) Conduct a hypothesis test that 2 is positively related to. [3 marks]

iii.) Test the hypothesis  against the hypothesis that at

least one coefficient is non-zero. [4 marks]

3. Run a regression of Y on and answer the following questions.

i.) Compare and contrast the standard errors on the estimates of ??3 from both

regressions. [4 marks]

ii.) Compare the fit of the two models using an appropriate measure of model fit.

[5 marks]

4. Plot the standardized residuals from the regression in question 3 above against

the fitted values and use these to answer the following questions.

4.1) Do there appear to be any outliers? Be sure to state your criterion for determining

outliers. [4 marks]

4.2) Do the outliers exhibit any particular pattern? If so, state this pattern and give an

explanation for its occurrence. [2 marks]


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