A Professor of Accounting Wanted to Develop a Multiple Regression $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon$

question 59

Essay

A professor of accounting wanted to develop a multiple regression model to predict the students' grades in her fourth-year accounting course. She decides that the two most important factors are the student's grade point average (GPA) in the first three years and the student's major. She proposes the model: $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon$ .
where
y
= fourth-year accounting course mark (out of 100). $x _ { 1 }$ = GPA in first three years (range 0 to 12). $x _ { 2 }$ = 1 if student's major is accounting.
= 0 if not. $x _ { 3 }$ = 1 if student's major is finance.
= 0 if not.
The computer output is shown below.
THE REGRESSION EQUATION IS $y =$ $9.14 + 6.73 x _ { 1 } + 10.42 x _ { 2 } + 5.16 x _ { 3 }$ . $$\begin{array} { | c | r c c | } \hline \text { Predictor } & \text { Coef } & \text { StDev } & T \\\hline \text { Constant } & 9.14 & 7.10 & 1.287 \\x _ { 1 } & 6.73 & 1.91 & 3.524 \\x _ { 2 } & 10.42 & 4.16 & 2.505 \\x _ { 3 } & 5.16 & 3.93 & 1.313 \\\hline\end{array}$$ S = 15.0 R-Sq = 44.2%. $$\begin{array}{l}\text { ANALYSIS OF VARIANCE }\\\begin{array} { | l | r c c c | } \hline \text { Source of Variation } & d f & \text { SS } & \text { MS } & F \\\hline \text { Regression } & 3 & 17098 & 5699.333 & 25.386 \\\text { Error } & 96 & 21553 & 224.510 & \\\hline \text { Total } & 99 & 38651 & & \\\hline\end{array}\end{array}$$ Do these results allow us to conclude at the 1% significance level that on average finance majors outperform those whose majors are not accounting or finance?

Understand various methods of legal reasoning and analysis used in legal memorandums.

Recognize the importance of proofreading, revising, and careful editing in legal document preparation.

Understand the concept of monopoly and the conditions that enable a firm to exert monopoly power.

Learn how monopoly power is measured, including the use of the Lerner Index.

---

Definitions:

Coherence

The quality of being logical, consistent and clear; often used to describe how well parts of a whole fit together meaningfully.

Significance

The importance or meaning of something, especially in terms of its impact or relevance to a specific context or field.

Well-being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Self-actualization

Bringing to fruition or realizing one’s innate talents and potential, seen as a core drive or necessity in people.