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variance) and obtains the following regression coefficients and standard errors:

Parameter

Estimate

Std. Error

Intercept

10.0

4.0

X

2.0

0.5

X2

-0.10

0.020

1.

Give the test statistic for testing H0: 2 = 0 (linear relation) vs HA: 2 ≠ 0 (nonlinear relation)

a)    2.5            b)   5.0         c)   4.0     d)    -4.0     e)     0.4

2.

She will conclude that the relation is nonlinear at the =0.05 significance level if her test statistic is:

a)   less than 2.131

b)   larger than 1.753

c)

larger than 2.131 in absolute value

d)

less than 2.179 in absolute value

e)    larger than 2.179 in absolute value

The following two problems are based on the following information

A bank analyst wishes to determine whether there is an association between a customer’s  balances and the probability the customer will sign up for a new service. He samples 500 customers, and contacts each about the new service, He observes the customer’s balance (in dollars) at the time of the contact and whether or not the customer signs up for the service. He fits a simple logistic regression model, obtaining the following regression coefficients and standard errors:

               b0 =-4.0      b1 = 0.0003        Sb0 = 1.0      Sb1 = 0.0001  

3.

Give the predicted probability that a customer with $10,000 in his/her account will sign up for  the service

a)   0.269

b)  0.368

c)  -1

d)  10.04

e)  0.731

4.

Give the test statistic and rejection region for testing whether there is an association (positive or negative) customer’s balance and whether  they will sign up for the service (=0.05).

a) TS: Xobs2 = 3.0     RR: Xobs2 3.841

b) TS: Xobs2 = 16.0   RR: Xobs2 3.841

c) TS: Xobs2 = 9.0     RR: Xobs2 3.841

d) TS: Xobs2 = 3.0     RR: Xobs2 161.448

e) TS: Xobs2 = 9.0     RR: Xobs2 161.448

The following 2 problems are based on the following information

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