The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the car’s mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012).

Suppose that you are the economic adviser to a local government in Central America that has to deal with a politically embarrassing shortage of affordable housing that was caused by rent controls that the government recently imposed. Your first suggestion is to get rid of the rent controls. Explain how and why rent controls (price ceilings) distort markets and what are some of the economic effects of rent controls.

Since the politicians are unwilling to get rid of the rent controls, they offer you a list of suggestions to make housing more affordable: 1. Government provided housing 2. Tax deductions to renters 3. Tax breaks to construction companies who provide affordable housing. Explain the costs and benefits of each and which option would you suggest?

Q2). The height (sidewalk to roof) of notable tall buildings in America is compared to the number of stories of the building (beginning at street level).

Part (a) Using "stories" as the independent variable and "height" as the dependent variable, make a scatter plot of the data

Part (b) Does it appear from inspection that there is a relationship between the variables?

Yes

No     

Part (c) Calculate the least squares line. Put the equation in the form of: ? = a + bx. (Round your answers to three decimal places.)

? = +   x

Part (d) Find the correlation coefficient r. (Round your answer to four decimal places.)

r =  

Is it significant?

Yes

No     

Part (e) Find the estimated height for 31 stories. (Use your equation from part (c). Round your answer to one decimal place.)

( ) ft

Find the estimated height for 98 stories. (Use your equation from part (c). Round your answer to one decimal place.)
( ) ft

Part (f) Use the two points in part (e) to plot the least squares line. (Upload your file below.)

Part (g) Based on the above data, is there a linear relationship between the number of stories in tall buildings and the height of the buildings?

Yes

No     

Part (h) Are there any outliers in the above data? If so, which point(s)?

No, there are no outliers.

Yes, (56, 1050) and (22, 401) are outliers.     

Yes, (22, 401) is an outlier.

Yes, (56, 1050) is an outlier.

Part (i) What is the estimated height of a building with 9 stories? (Use your equation from part (c). Round your answer to one decimal place.

( ) ft

Does the least squares line give an accurate estimate of height? Explain why or why not.

The estimate for the height of a nine-story building does not make sense in this situation.

The least squares regression line does not give an accurate estimate because the estimated height of a building with nine stories is not within the range of y-values in the data.     

The least squares regression line does not give an accurate estimate because a nine-story building is not within the range of x-values in the data.

The least squares regression line does give an accurate estimate because none of the buildings surveyed had nine stories.

Part (j) Based on the least squares line, adding an extra story adds about how many feet to a building? (Round your answer to three decimal places.)

( ) ft

Part (k) What is the slope of the least squares (best-fit) line? (Round your answer to three decimal places.)

Interpret the slope.

As the -Select- ( number of stories or height) of the building increases by one unit, the  -Select- (number of stories or height) of the building increases by -Select- (stories or feet) .

A researcher wanted to know the determinants of SAT scores in the United States of America. Using data from 4,137 survey respondents, the following equation was estimated:

????̂=    1,028.10 + 19.30ℎ???? −2.19ℎ????² −45.09?????? −169.81 ????? +62.31??????.?????

Standard Error:    (6.29) (3.83) (0.53) (4.29) (12.71) (18.15)

R²: 0.0858 n = 4,137
where Sat is the combined SAT score, hsize is the size of the student’s high school graduating class, in hundreds, female is a gender dummy variable, and black is a race dummy variable equal to one for blacks and zero otherwise.

(i) Is there strong evidence that hsize2 should be included in the model? From this equation, what is the optimal high school size?

(ii) Holding hsize fixed, what is the estimated difference in SAT score between nonblack females and nonblack males? How statistically significant is this estimated difference?

(iii) What is the estimated difference in SAT score between nonblack males and black males? Test the null hypothesis that there is no difference between their scores,

against the alternative that there is a difference.

(iv) What is the estimated difference in SAT score between black females and nonblack females? What would you need to do to test whether the difference is statistically
significant?

A population of butterfly called the Concord is found deep in the jungles of Central America. After 1000 years, within this same community, a new species of butterfly named the Rosaria has arisen!

A) Considering that this occurred in the same community, how would you best refer to this type of speciation?

B) The Concord is a species which produces a chemical in its wings that is toxic to certain species of birds. Interestingly, it is observed that the same birds that avoid the Concord also avoid eating the Rosaria butterflies, even though they do not produce this toxic chemical. From a community ecology, what specific term would you use to best describe this scenario? Explain briefly.

C) The Rosaria also seems to have evolved another wonderful strategy to avoid these birds! As their name suggests the Rosaria’s entire body has a bright pink-red color. It seems to inhabit mainly these same colored flowers in order to gain nectar. What term would you use to describe this type of strategy being used to avoid predators?

D) Scientists have identified that both the Rosaria and Concord are indeed different species as they cannot make viable offspring. Name and describe 3 possible reasons which you may want to investigate as to why they do not have the ability to reproduce between species.

The height (sidewalk to roof) of notable tall buildings in America is compared to the number of stories of the building (beginning at street level). Stories (x-value) Height In feet (y-value) 57 1,050 28 428 26 362 40 529 60 790 22 401 38 380 110 1,454 100 1,127 46 700 Use the regression analysis to answer the following questions.

Based on the least squares line, adding an extra story is predicted to add about how many feet to a building?

Are there any outliers in the data? If so, which point(s)? You must explain your answer using the definition defined by our book using standard error.

Taxation in America is always a "hot topic." In designing a taxation system

a. what are the basic principles to be considered?

b. how is the burden of a tax calculated?

c. list the three basic tax burdens (Hint: one of them is "progressive.") and list examples of each.

d. if the government creates a tax on wealth that taxes the first $50,000 of assets a person owns at 1%, the next $50,000 at 2%, the third at 3% and so on, what type of tax burden is that? How much tax would you owe if you had $125,000 in assets (car, personal property and small home)?

The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends upon many factors, including the model year, mileage, and condition. To investigate the relationship between the car’s mileage and the sales price for a 2007 model year Camry, the following data show the mileage and sales price for 19 sales (PriceHub website, February 24, 2012). Suppose that you are considering purchasing a previously owned 2007 Camry that has been driven 60,000 miles. What price you would offer to the seller and why?

Include discussion of the scatter diagram, regression equation, test for significant relationship, coefficient of determination, correlation coefficient, interpretation of the slope of the regression equation, 95% prediction interval and the 95% confidence interval of the mean sales price given mileage.

The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the car’s mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012).