1.A researcher considered a multiple linear regression model for an empirical study,but failed tocompute the parameter estimates.Which of the following would be the most likely cause?(a)The relationships between variables are nonlinear.(b)Data values are not measured accurately.(c)Multicollinearity among the explanatory variables.(d)There is an exact linear relationship among the explanatory variables.8.Consider the fitted regression lineIn(S core)=6.439 +0.00284Income,(0.003)(0.00018)where Score denotes the student’s test Score (S core 60 means 60 marks),Income denotes theaverage annual per capita income in the school area (measured in thousands of sterling pounds;Income 2 means f2000).The values in brackets underneath the parameter estimates are thecorresponding standard errors.What is the most appropriate interpretation of the parameterestimate 0.00284?(a)If the average annual per capita income in the school area increases by￡l,the student’sscore is expected to increase by 0.284%.(b)If the average annual per capita income in the school area increases by￡lOOO,the student’sscore is expected to increase by 0.284%.(c)If the average annual per capita income in the school area increases by 1%,the student’sscore is expected to increase by 0.284%.(d)If the average annual per capita income in the school area increases by￡l,the student’sscore is expected to increase by 0.00284%.(e)If the average annual per capita income in the school area increases by￡lOOO,the student’sscore is expected to increase by 0.00284%.(f)If the average annual per capita income in the school area increases by 1%,the student’sscore is expected to increase by 0.00284%.(g)If the average annual per capita income in the school area increases by f￡l,the student’sscore is expected to increase by 0.00284.(h)If the average annual per capita income in the school area increases by￡lOOO,the student’sscore is expected to increase by 0.00284.(i)If the average annual per capita income in the school area increases by 1%,the student’sscore is expected to increase by 0.00284.←
