You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression:(1) Accidents = 15.2 +0.23°Rain - 0.11*Rain2 + 0.08 Rain3 -0.0s Rain(7.1) (0.13)(0.05)(0.03)(0.02)(2) Accidents = 13.2 +0.14*Rain -0.09 Rain?+0.07 Rain3(5.1) (0.05)(0.03)(0.04)(3) Accidents= 75+0.24*Rain - 0.13 Rain2(3.6) (0.12)(0.07)(4) Accidents = 94 +0.18°Rain(2.3) (0.05)Based on a 5% significance level, which of the 4 specifications is the most appropriate model?O Specification1O Specification 2O Specification 3O Specification 4O None of them since Rain does not have a statistically significant effect on Accidents

Based from the specifications, we are to assume that the values under the regression equations are…

You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +023°Rain - 0.11 Rain² + 0.08 Rain3 -00s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents 132+0.14 Rain -0.009 Rain+007 Rain (5.1) (0.05) (0.03) (0.04) (3) Accidents - 75 +0.24*Rain - 0.13°Rain? (3.6) (0.12) (0.07) (4) Accidents = 9A + 0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification 1 O Specification 2 O Specification 3 OSpecification 4 O None of them since Rain does not have a statistically significant effect on Accidents

You are interested in the effect rainfall has on the number of traffic accidents in your city. You consider 4 possible specifications for a polynomial regression: (1) Accidents = 15.2 +023°Rain - 0.11 Rain² + 0.08 Rain3 -00s Rain (7.1) (0.13) (0.05) (0.03) (0.02) (2) Accidents 132+0.14 Rain -0.009 Rain+007 Rain (5.1) (0.05) (0.03) (0.04) (3) Accidents - 75 +0.24*Rain - 0.13°Rain? (3.6) (0.12) (0.07) (4) Accidents = 9A + 0.18°Rain (2.3) (0.05) Based on a 5% significance level, which of the 4 specifications is the most appropriate model? O Specification 1 O Specification 2 O Specification 3 OSpecification 4 O None of them since Rain does not have a statistically significant effect on Accidents

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 2E

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