The following regression model was fitted to 30 observations: where y = Temperature (F) x 1 =

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The following regression model was fitted to 30 observations:

where
ŷ = Temperature (°F)
x= Cloud cover (%)
x2 = Humidity (%)
x= Wind (mph)

The numbers below the coefficients are the coefficient standard errors.
a. When the independent variable of cloud cover had been taken out from the model, the R2 = 0.679. Justify this statement.
b. Test at the 1% level the null hypothesis, all else being equal, for the significance of the coefficient on x1.
c. Determine whether the model has uniform variance over the predicted values at the 5% significance level.
d. Besides the method used in part c., what other method can be used in detecting heteroscedasticity? Explain how.

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Related Book For  book-img-for-question

Statistics For Business And Economics

ISBN: 9781292315034

9th Global Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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