ECO 351 - Business Statistics II - Problem Set 2

2. (Studenmund, exercise 1.5) Suppose you collect data on the heights and weights of 30 randomly selected men and estimate the following regression equation:

3. (Studenmund, exercise 1.6) Consider the following estimated regression equation:

4. (Studenmund, exercise 1.9) Your friend has an on-campus job making telephone calls to alumni asking for donations to your college’s annual fund, and she wonders whether her calling is making any difference. In an attempt to measure the impact of student calls on fund raising, she collects data from 50 alums and estimates the following equation:

4. (Studenmund, exercise 1.9) Your friend has an on-campus job making telephone calls to alumni asking for donations to your college’s annual fund, and she wonders whether her calling is making any difference. In an attempt to measure the impact of student calls on fund raising, she collects data from 50 alums and estimates the following equation:

5. The distinction between the stochastic error term and the residual is one of the most difficult concepts to master. In your own words, define the error term and define the residual. In what ways (state at least 2) do the residual and error term differ?