Regression Analysis: IRS Audit
Not what you're looking for?
See the attached data file.
The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The following table shows the average adjusted gross income reported and the percent of the returns that were audited for 20 selected IRS districts.
Instructions:
1. write the regression equation,
2. interpret the regression constant and regression coefficient,
3. forecast a value for the dependent variable,
4. test the significant of the regression coefficient with alpha equaling .05,
5. test the overall significant of the regression model,
6. interpret the coefficient of determination, and
7. are there any violations of the general linear model? explain.
Purchase this Solution
Solution Summary
The solution provides step by step method for the calculation of regression analysis. Formula for the calculation and Interpretations of the results are also included.
Solution Preview
Please see the attachments.
The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The following table shows the average adjusted gross income reported and the percent of the returns that were audited for 20 selected IRS districts.
Answers
1. Write the regression equation.
The general form of simple linear regression is Y= a + bX
Where Y is the dependent variable and X is the independent variable, a and be are known as the regression coefficients .They are estimated by the method of least squares. The estimates of a and b are given by
The parameter b measures the impact of unit change in X on the dependent variable Y. It is the slope of the regression line. The parameter a is the value of Y when X=0. It is known as the Intercept term.
The regression ...
Purchase this Solution
Free BrainMass Quizzes
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.