1. Construct a 99% prediction interval for the Acres/Gardener ratio for a household with a...

90.2K

Verified Solution

Question

Accounting

1. Construct a 99% prediction interval for the Acres/Gardener ratio for a household with a Consumers/Gardener ratio equal to 2. Construct a 99% confidence interval for the mean Acres/Gardener ratio among households with a Consumers/Gardener ratio equal to 2. State the interpretation of each interval and explain why they are different. (Do this both in math(typed) and r code please)

2. Compute the fitted residuals. Do it "manually" and check your values using the `lm()` function in R. Check that the two vectors are equal using the `all.equal()` function or by computing their mean squared error (MSE) or another measure of discrepancy. Compute the residual standard error ($\hat\sigma$) and compare it with the summary output of your `lm` object. (Do this both in math(typed) and r code please)

3. Use the fitted residuals to investigate the assumptions of homoskedasticity and linearity in the model. The SLR model sometimes also assumes that the residuals are Normally distributed. Investigate this by making a QQ plot of the fitted residuals. Do you see any evidence of deviations from any of the three assumptions? Do you note any outliers? (Do this both in math(typed) and r code please)

Data set:

consumers acres 1 1 1.71 2 1.08 1.52 3 1.15 1.29 4 1.15 3.09 5 1.2 2.21 6 1.3 2.26 7 1.37 2.4 8 1.37 2.1 9 1.43 1.96 10 1.46 2.09 11 1.52 2.02 12 1.57 1.31 13 1.65 2.17 14 1.65 2.28 15 1.65 2.41 16 1.66 2.23 17 1.87 3.04 18 2.03 2.06 19 2.05 2.73 20 2.3 2.36

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students