Examlex

Solved

Exhibit 17

question 112

Multiple Choice

Exhibit 17.4.A researcher wants to examine how the remaining balance on $100,000 loans taken 10-20 years ago depends on whether the loan was a prime or sub-prime loan.He collected a sample of 25 prime loans and 25 sub-prime loans and records the data in the following variables: Balance = the remaining amount of loan to be paid off (in dollars) ,
Time = the time elapsed from taking the loan,
Prime = a dummy variable assuming 1 for prime loans,and 0 for sub-prime loans.
The regression results obtained for the models:
Model A: Balance = β0 + β1Prime + ε
Model B: Balance = β0 + β1Time + β2Prime + β3Time × Prime + ε
Model C: Balance = β0 + β1Prime + β2Time × Prime + ε,
Are summarized below. Exhibit 17.4.A researcher wants to examine how the remaining balance on $100,000 loans taken 10-20 years ago depends on whether the loan was a prime or sub-prime loan.He collected a sample of 25 prime loans and 25 sub-prime loans and records the data in the following variables: Balance = the remaining amount of loan to be paid off (in dollars) , Time = the time elapsed from taking the loan, Prime = a dummy variable assuming 1 for prime loans,and 0 for sub-prime loans. The regression results obtained for the models: Model A: Balance = β<sub>0</sub> + β<sub>1</sub>Prime + ε Model B: Balance = β<sub>0</sub> + β<sub>1</sub>Time + β<sub>2</sub>Prime + β<sub>3</sub>Time × Prime + ε Model C: Balance = β<sub>0</sub> + β<sub>1</sub>Prime + β<sub>2</sub>Time × Prime + ε, Are summarized below. Note.The values of relevant test statistics are shown in parentheses below the estimated coefficients. Refer to Exhibit 17.4.Using Model B,what is the null hypothesis for testing the joint significance of the variable Time and the interaction variable Time × Prime? A) H<sub>0</sub>: β<sub>1</sub> = β<sub>2</sub> = β<sub>3</sub> = 0 B) H<sub>0</sub>: β<sub>1</sub> = 0 and β<sub>3</sub> = 0 C) H<sub>0</sub>: β<sub>1</sub> = 0 or β<sub>3</sub> = 0 D) H<sub>0</sub>: β<sub>1</sub> ≠ 0 or β<sub>3</sub> ≠ 0 Note.The values of relevant test statistics are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.4.Using Model B,what is the null hypothesis for testing the joint significance of the variable Time and the interaction variable Time × Prime?

Definitions:

Building Site

A piece of land that has been selected and prepared for the construction of a building.

Related Questions

Q5: When the forecasting method of seasonal dummy

Q18: In the nineteenth century,clerical work<br>A)offered women opportunities

Q30: When speaking of race,a majority group is

Q50: For the goodness-of-fit test for normality to

Q51: Exhibit 15-9.An economist estimates the following model:

Q53: The value 0.75 of a sample correlation

Q60: For the quadratic regression equation <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2339/.jpg"

Q63: Exhibit 14-6.A manager at a local bank

Q70: Exhibit 14-5.An marketing analyst wants to examine

Q70: Consider the following regression results based on