Data-Generating Process Confidence Level Confidence Interval
The data attached contains information on customers’ ratings of your product (CustRate), on a scale of 1 to 100, along with demographic information. The demographic information includes: income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals one if the respondent is married and zero otherwise. Assume the data-generating process can be written as:CustRatei=α+β1Inci+β2Agei+β3Educi+β4Marri+Ui.
- Test the hypothesis that income has no impact on customer rating, using a confidence level of 95%. Be sure to provide the reasoning behind your result.
- Test the hypothesis that β2=0.05, using a confidence level of 90%. Be sure to provide the reasoning behind your result.
- Build a 95% confidence interval for the impact of education on customer rating. Be sure to provide the reasoning for your result.
- Build a 95% confidence interval for the impact of being married on customer rating. Be sure to provide the reasoning for your result.
- Predict the change in customer rating if a customer’s income increases by $10,000, with no change in age, education, or marital status. The data attached contains information on customers’ ratings of your product (CustRate), on a scale of 1 to 100, along with demographic information. The demographic information includes: income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals one if the respondent is married and zero otherwise. Assume the data-generating process can be written as:CustRatei=α+β1Inci+β2Agei+β3Educi+β4Marri+Ui.
- Test the hypothesis that income has no impact on customer rating, using a confidence level of 95%. Be sure to provide the reasoning behind your result.
- Test the hypothesis that β2=0.05, using a confidence level of 90%. Be sure to provide the reasoning behind your result.
- Build a 95% confidence interval for the impact of education on customer rating. Be sure to provide the reasoning for your result.
- Build a 95% confidence interval for the impact of being married on customer rating. Be sure to provide the reasoning for your result.
- Predict the change in customer rating if a customer’s income increases by $10,000, with no change in age, education, or marital status.