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Business / Statistics for Business and Economics 12 / Chapter 12 / Problem 126E

Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich

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Solution: Reality TV and cosmetic surgery. Refer to the

Chapter 12, Problem 126E

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QUESTION:

Reality TV and cosmetic surgery. Refer to the BodyImage: An International Journal of Research (March2010) study of the influence of reality TV shows on one's desire to undergo cosmetic surgery, Exercise12.17 (p. 682). Simulated data for the study is saved in the file. In Exercise 12.17, you fit the first-order model, \(E(y)=\beta_0+\beta_1x_1+\beta_2x_2+\beta_3x_3+\beta_4x_4\), where y = desire to have cosmetic surgery, \(x_1\) is a dummy variable for gender, \(x_2\) = level of self-esteem, \(x_3\) = level of body satisfaction,and \(x_4\) = impression of reality TV.

a. Check the data for multicollinearity. If you detect multicollinearity, what modifications to the model do you recommend?

b. Conduct a complete residual analysis for the model. Doyou detect any violations of the assumptions? If so, what modifications to the model do you recommend?

Questions & Answers

QUESTION:

Reality TV and cosmetic surgery. Refer to the BodyImage: An International Journal of Research (March2010) study of the influence of reality TV shows on one's desire to undergo cosmetic surgery, Exercise12.17 (p. 682). Simulated data for the study is saved in the file. In Exercise 12.17, you fit the first-order model, \(E(y)=\beta_0+\beta_1x_1+\beta_2x_2+\beta_3x_3+\beta_4x_4\), where y = desire to have cosmetic surgery, \(x_1\) is a dummy variable for gender, \(x_2\) = level of self-esteem, \(x_3\) = level of body satisfaction,and \(x_4\) = impression of reality TV.

a. Check the data for multicollinearity. If you detect multicollinearity, what modifications to the model do you recommend?

b. Conduct a complete residual analysis for the model. Doyou detect any violations of the assumptions? If so, what modifications to the model do you recommend?

ANSWER:

Step 1 of 7

(a)

Use MINITAB to check for the multicollinearity for the given data.

The least squares prediction equation for the cosmetic surgery as the function of gender , self-esteem , body satisfaction , and impression of reality TV is given below:

…… (1)

MINITAB procedure:

Step 1: Choose Stat > Basic Statistics > Correlation.

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