\documentstyle[11pt,bj]{article}

\begin{document}

\frenchspacing

\input info.tex

\def\ul#1{\underline{#1}}

\def\title{Homework 4}
\def\due{Thursday, Oct 25, 2001}

\pagestyle{myheadings}
\markboth{\title}{\title}
\makeatletter
%\def\@oddhead{\hbox{}\bf\leftmark \hfil \rightmark}
\def\@oddhead{\bf\rightmark\hfil} %\rm\thepage}
\let\@evenhead\@oddhead
\newsavebox{\datebox}
\savebox{\datebox}{\llap{\term}{}}
\def\@oddfoot{\class\hfil\usebox{\datebox}}
\let\@evenfoot\@oddfoot
\makeatother

\begin{center}\large\bf
\title\\ 
Due: \due \\
\end{center}

%\begin{problist}

\begin{enumerate}

\item[$\bullet$] {\bf Reading.  }
The current material on ANOVA models is most like what is in RPD,
Chapters 9 and 17.  This will become more obvious on Tue Oct 23 (I
hope!).

\item[$\bullet$] {\bf Problems to be turned in:}

\item RPD, p. 150, \#4.3.

\item RPD, pp. 157--158, \#4.12

\item In a regression study, three types of banks were involved,
namely, commercial, mutual savings, and savings and loan.  Consider
the following system of indicator variables for type of bank:
\begin{verbatim}

             Type of Bank       X2     X3
-----------------------------------------
               Commercial        1      0
           Mutual Savings        0      1
         Savings and Loan       -1     -1
\end{verbatim}
\begin{enumerate}
\item Develop a first--order linear regression model for
relating last year's profit or loss ($Y$) to size of
bank ($X_1$) and type of bank ($X_2$,$X_3$).
\item State the response functions for the three types of
banks.
\item Interpret each of the following quantities: (1) $\beta_2$,
(2) $\beta_3$, (3) $- \beta_2 - \beta_3$.
\end{enumerate}

\item RPD, p. 233, \#7.13.  You can essentially repeat your
  solution for \#3.13 from HW\#3 for part (a).  After you finish this
  exercise, write {\em one} paragraph entitled: {\em Whether to
    include more regressors: the bias/variance tradeoff for
    coefficients of regressors already in the model.}  Audience:
  yourself (and me, of course).  Write what you would want to remember
  about this in five years when you are teaching a regression course
  yourself and you come to this issue in your course.

\item Think about RPD, p. 204, \#6.9.  {\em You don't have to turn
    anything in for this question.}

\end{enumerate}

\end{document}

  




%\end{problist}

\end{document}



