Highlights
Task:
QUESTION A1 (10 marks)
In the last part of the 20th century, scientists developed the theory that the planet was warming and that the primary cause was the increasing amounts of atmospheric carbon dioxide (CO 2 ), which are the product of burning oil, natural gas, and coal (fossil fuels). Although many climatologists believe in the so-called greenhouse effect, many others do not subscribe to this theory. There are three critical questions that need to be answered in order to resolve the issue.
methane, water vapour, and carbon dioxide. All occur naturally in nature. Carbon dioxide is vital to our life on Earth because it is necessary for growing plants. The amount of CO 2 produced by fossil fuels is a relatively small proportion of all the CO 2 in the atmosphere.
QUESTION A2: Are e-grocer sales profitable? [4 marks]
Companies that sell groceries over the internet are called e-grocers. Customers enter their orders, pay by credit card, and receive delivery by truck. A potential e-grocer analysed the market and determined that to be profitable the average order would have to exceed $85. To determine whether an e-grocery would be profitable in one large city, the service was offered to a random sample of customers and the size of the orders recorded in file ORDERS.xlsx. Can we infer from these data that an e-grocery will be profitable in this city?
QUESTION A3: Do higher interest rates reduce the availability of new housing? [4 marks]
A homebuilders’ association lobbying for various home subsidy programs argued that, during periods of high interest rates, the number of building permits issued decreased drastically, which in turn reduced the availability of new housing. The raw data are recorded in file HOUSE.xlsx were presented as part of their argument. Analyse the data.
QUESTION A4: Life Insurance and Longevity [6 marks]
a Perform a multiple regression analysis on these data.
b Interpret the coefficient estimates and their signs.
c Test for the significance of all the independent variable coefficients. (? = 0.05)
d Is the model likely to be useful in predicting men’s longevity?
e Are the required conditions satisfied? Justify your answer.
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