An Economist Is in the Process of Developing a Model $\left( x _ { 1 } \right)$

question 36

Essay

An economist is in the process of developing a model to predict the price of gold. She believes that the two most important variables are the price of a barrel of oil $\left( x _ { 1 } \right)$ and the interest rate $\left( x _ { 2 } \right)$ She proposes the first-order model with interaction: $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 3 } + \varepsilon$ .
A random sample of 20 daily observations was taken. The computer output is shown below.
THE REGRESSION EQUATION IS $y =$ $115.6 + 22.3 x _ { 1 } + 14.7 x _ { 2 } - 1.36 x _ { 1 } x _ { 2 }$ . $$\begin{array} { | c | r r c | } \hline \text { Predictor } & \text { Coef } & \text { SiDev } & T \\\hline \text { Constant } & 115.6 & 78.1 & 1.480 \\x _ { 1 } & 22.3 & 7.1 & 3.141 \\x _ { 2 } & 14.7 & 6.3 & 2.333 \\x _ { 1 } x _ { 2 } & - 1.36 & 0.52 & - 2.615 \\\hline\end{array}$$ S = 20.9 R-Sq = 55.4%. $$\begin{array}{l}\text { ANALYSIS OF VARIANCE }\\\begin{array} { | l | r r r c | } \hline \text { Source of Variation } & d f & \text { SS } & \text { MS } & F \\\hline \text { Regression } & 3 & 8661 & 2887.0 & 6.626 \\\text { Error } & 16 & 6971 & 435.7 & \\\hline \text { Total } & 19 & 15632 & & \\\hline\end{array}\end{array}$$ Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of gold are linearly related?

Understand the processes through which a group increases collective action through resource access.

Acknowledge the contributions and challenges of labor movements in American history.

Analyze the responses of government and institutions to protests and social movements.

Understand the theoretical frameworks of social movements, including resource mobilization, frame alignment, and relative deprivation theories.

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Definitions:

Entropy

A measure of the disorder or randomness in a system, often related to the number of available states a system can occupy.

% Conversion

The percentage indicating how much of the reactants have been transformed into products in a chemical reaction.

ΔG°

The change in standard Gibbs free energy during a chemical reaction, indicating spontaneity at standard conditions.

Enthalpy

A thermodynamic quantity equivalent to the total heat content of a system. It is equal to the internal energy of the system plus the product of pressure and volume.