The document is an exam for a business statistics class that contains 22 multiple choice questions testing concepts related to regression analysis. It provides data from the World Bank on per capita GDP, health expenditures, and immunization rates for several countries and years for students to perform regressions on. The questions assess students' ability to run regressions in Excel, interpret results like R-squared and standard errors, and draw conclusions about relationships between variables based on regression output.

1. ECN221 Business Statistics Final Examination
https://homeworklance.com/downloads/ecn221-business-statistics-final-examination/
ECN221 Business Statistics Final Examination
QUESTION 1
1. Concerning the final exam:
The date and time are listed on the syllabus. If you fail to show up you will automatically fail
the class.
The date and time are listed on the syllabus. If you fail to show up you will still have however
many points you earned on homework, other tests and quizzes and will be graded based on those
points.
The date and time are not on the syllabus.
The exam will be administered in the Hayden Library.
1 points
QUESTION 2
1. Concerning your grade in the class:
Grades will be assigned randomly. Dr. Cox will use a random number generator to assign
points and then make up an entirely new grading scale.
Your grade depends on how badly you need a certain score. If you email Dr. Cox repeatedly
asking for a higher grade you will be treated better than other students.
You can determine your grade by using the grade calculator that is on Bb and this calculator
follows the policy outlined in the syllabus. All students are treated the same and grades are
based on the number of points each student earned by demonstrating their knowledge by
answering questions correctly.
It is impossible to figure out your grade because the syllabus is unclear and the grading policy is
so mysterious.
1 points
QUESTION 3
1. For this assignmentyou will use data from the World Bank found in the homework data seton the homework 12
tab. The data on the tab are per capita GDP, per capita health expenditures and the % on young children immunized
for DPT and the data are for a few different years and manycountries. Because the World Bank does nothave data
for every variable for every country for every year there are some missing values in the data. We will deal with this as
we go. You have opened the tab for the data.
True
False
1 points
QUESTION 4
1. Sort the data by 2013 per capita GDP. Be careful and make sure that all of the data are kept together. How many
countries have a non-missing entry for per capita GDP?
1 points
QUESTION 5

2. 1. For the countries that have a non-missing per capita GDP whatis the average per capita GDP? Answer to the
nearestdollar (whole number) and do not include a dollar sign.With all problems you can round up or down.
1 points
QUESTION 6
1. You will run a regression with 2013 per capita GDP and 2013 per capita health care spending. It seems plausible
that in countries where people have greater income the also spend more on health care. You will use per capita GDP
as the independentor explanatory variable in your regression and health care spending will be the dependent
variable. However, excel will error out if there are missing values so use onlyobservations thathave both a 2013 per
capita GDP and a 2013 per capita spending on health care. This may mean you either create a new table on a
separate tab or delete some ofthe observations after sorting. How many observations will you use in your
regression? Hint:it should be 183 and if it isn’tthen you are going to get wrong numbers later.
1 points
QUESTION 7
1. There is a video on the videos tab in Bb showing how to run a regression in excel.
True
False
0.5 points
QUESTION 8
1. If you are struggling with this homework and/or wantto check your knowledge before submitting then you can take
advantage of the practice homework.
True
False
0.5 points
QUESTION 9
1. Warning: I have seen students in the pastmix up the dependentand independentvariables and this leads to a bunch
of wrong answers. Please be careful and remember thatthe “Y” variable is the dependentvariable and that the “X”
variable is the independentvariable. Use the World Bank data provided to run a regression where 2013 per capita
health care expenditure is the dependentvariable and 2013 per capita GDP is the independentvariable. What is R
square? Answer to three decimal places.
1 points
QUESTION 10
1. Use the results from the regression you justran with per capita GDP and health care. You already found R square
for this regresion. What is the estimated variance ofthe error term? Answer to the nearestinteger. Hint this number
should be less than 1,000,000.
2 points
QUESTION 11
1. Use the results from the regression you justran with per capita GDP and health care. You already found R square
for this regresion. What is the estimated standarddeviationof the error term? Answer to the nearestinteger.
2 points
QUESTION 12
1. Using the same regression results whatis the estimated coefficienton per capita GDP? Answer to three decimal
places.
2 points
QUESTION 13
1. Use the same regression results where you already found R square and other results for this regresion. What is the
standard error for the estimated slope ofthe regression line? Answer to four decimal places.
2 points
QUESTION 14

3. 1. Use the regression results you have found. What is the test statistic for a testthat the slope ofthe regression line is
0? Answer to two decimal places.
2 points
QUESTION 15
1. In the per capita GDP versus per capita health care expenditure regression thatyou justran you fail to reject the
hypothesis thatthe slope is 0 (i.e. that the per capita GDP has no impacton the amountspenton health care).
True
False
2 points
QUESTION 16
1. In the regression thatyou justran you reject the hypothesis thatthe intercept is 0 (as usual assume alpha=.05).
True
False
2 points
QUESTION 17
1. Using the results from the regression you ran,what is the predicted per capita spending on health care for a country
with per capita GDP of $20,000? Answer to the nearestinteger,do not include a dollar sign,you may round up or
down as usual. Hintyour answer should be between 100 and 10,000 which is notmuch of a hint but it tells you if you
are way out of the ballpark.
2 points
QUESTION 18
1. Based on your regression results and your answer in the previous question using the World Bank data, whathappens
to per capita expenditure on health care as per capita GDP increases?
The total expenditure stays constant because as the price increases the amount people buy stays
the same.
The total expenditure decreases. As the per capita GDP increase people are healthier and so
they spend less on health care on average.
The expenditure increases. As per capita GDP increases people tend to spend more on health
care.
None of the other answers are correct.
2 points
QUESTION 19
1. Which of the following is an assumption we typicallymake when performing OLS regression?
That the variance of the error term is constant across values of the independent variable.
That the independent variable has mean 0.
That the sum of the squared error terms is equal to 0.
The derivative of the MSE with respect to the error term is positive.
1 points
QUESTION 20
1. What is the largestpossible value that R square can be?
1 points
QUESTION 21
1. For simple regression the p-value for the F testwill always be smaller than the p-value for the t test for the
independentvariable (more precisely,the t test for the null hypothesis thatthe coefficient on the independentvariable
is 0).
True

4. False
1 points
QUESTION 22
1. Companies and researchers never use software to perform regression analysis. They always make the calculations
by hand and so using excel or another type of software is justplain silly.
True
False
1 points