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TABLE 14-11 A Weight-Loss Clinic Wants to Use Regression Analysis to Build

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TABLE 14-11
A weight-loss clinic wants to use regression analysis to build a model for weight-loss of a client (measured in pounds). Two variables thought to affect weight-loss are client's length of time on the weight-loss program and time of session. These variables are described below:
Y = Weight-loss (in pounds)
X₁ = Length of time in weight-loss program (in months)
X₂ = 1 if morning session, 0 if not
X₃ = 1 if afternoon session, 0 if not (Base level = evening session)
Data for 12 clients on a weight-loss program at the clinic were collected and used to fit the interaction model:
Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₁X₂ + β₅X₁X₂ + ε
Partial output from Microsoft Excel follows:
TABLE 14-11 A weight-loss clinic wants to use regression analysis to build a model for weight-loss of a client (measured in pounds). Two variables thought to affect weight-loss are client's length of time on the weight-loss program and time of session. These variables are described below: Y = Weight-loss (in pounds) X₁ = Length of time in weight-loss program (in months) X₂ = 1 if morning session, 0 if not X₃ = 1 if afternoon session, 0 if not (Base level = evening session) Data for 12 clients on a weight-loss program at the clinic were collected and used to fit the interaction model: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₁X₂ + β₅X₁X₂ + ε Partial output from Microsoft Excel follows:    -Referring to Table 14-11, the overall model for predicting weight-loss (Y) is statistically significant at the 0.05 level.
-Referring to Table 14-11, the overall model for predicting weight-loss (Y) is statistically significant at the 0.05 level.


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Direct Taxes

Taxes levied directly on an individual's or organization's income or wealth.

Marginal Tax Rate

The percentage of tax levied on each additional dollar of income, representing the tax rate applicable to every tax bracket for which you're eligible.

Tax Reform Act

refers to legislation aimed at modifying the tax system. One well-known example is the Tax Reform Act of 1986 in the United States, which simplified the income tax code, broadened the tax base, and eliminated many tax shelters.

Kemp-Roth Tax Cut

A significant federal tax cut in the United States passed in 1981, aiming to stimulate economic growth through reduced individual income tax rates.

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