ECON 202 Chapter Notes -Quartile
Get access
Related Documents
Related Questions
You are the manager of Meals on Wheels, a non-profit organization that delivers prepared meals to elderly citizens. Five new volunteers have joined your organization, and it is your job to assign each volunteer to a neighborhood where they will make deliveries. Your organization serves two areas: Uptown and Downtown. Based on the distances between homes, traffic volumes, and the number of people served, you have calculated the following data for the productivity of volunteers in each neighborhood:
Uptown |
Downtown |
||||||
# Volunteers |
MP |
AP |
TP |
# Volunteers |
MP |
AP |
TP |
1 |
24 |
24 |
24 |
1 |
16 |
16 |
16 |
2 |
20 |
22 |
44 |
2 |
14 |
15 |
30 |
3 |
13 |
19 |
57 |
3 |
12 |
14 |
42 |
4 |
7 |
16 |
64 |
4 |
10 |
13 |
52 |
5 |
1 |
13 |
65 |
5 |
8 |
12 |
60 |
Consistent with the organization's goals, your responsibility is to allocate the five new volunteers so as to maximize the number of people served. To do this, how many of the volunteers should be assigned to Uptown, and how many should be assigned Downtown? Explain how you know this (without simply saying that you added up all the combinations and found the largest value.
Mulberry Realty sells homes in the northeast section of the United States. A frequently asked question by prospective buyers is: If we buy this house, how much can we expect to pay to heat it during the winter? The research division of Mulberry is asked to develop some guidelines for heating costs (Cost) (measured in $) for single family homes. The division decides three variables are related to heating costs: (1) the mean daily outside temperature (Temp) (in degrees Fahrenheit); (2) the number of inches of attic insulation (Insulation); and (3) the age of the furnace in the house (Age) (measured in years). The division collected data during the month of January for a sample of homes. Parentheses contain the variable names (in bold) as listed in the data set.
The data set for this scenario is included in an Excel file.
a. Is the information used in this analysis, cross-sectional data or time series data? (4 pts)
b. State your a priori hypothesis about the sign of the slope for each independent variable. (3 pts each)
c. Write out the estimated regression equation using variable specific names? (5 pts)
d. Interpret the slope coefficient for the variable with the largest slope coefficient. (5 pts)
e. For the slope coefficient with the smallest value (in absolute value), test to see if it has the directional relationship hypothesized in part (b). Alpha = 0.05. (15 pts)
Data Set:
Cost ($) | Temp (deg) | Insulation (ins.) | Age (yrs) |
250 | 35 | 3 | 6 |
360 | 29 | 4 | 10 |
165 | 36 | 7 | 3 |
43 | 60 | 6 | 9 |
92 | 65 | 5 | 6 |
200 | 30 | 5 | 5 |
355 | 10 | 6 | 7 |
290 | 7 | 10 | 10 |
230 | 21 | 9 | 11 |
120 | 55 | 2 | 5 |
73 | 54 | 12 | 4 |
205 | 48 | 5 | 1 |
400 | 20 | 5 | 15 |
320 | 39 | 4 | 7 |
72 | 60 | 8 | 6 |
272 | 20 | 5 | 8 |
94 | 58 | 7 | 3 |
190 | 40 | 8 | 11 |
235 | 27 | 9 | 8 |
139 | 30 | 7 | 5 |