The following model was fitted to a sample of 30 families in order to explain household milk
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The following model was fitted to a sample of 30 families in order to explain household milk consumption:
y = b0 + b1x1 + b2x2 + e where y = milk consumption, in quarts per week x1 = weekly income, in hundreds of dollars x2 = family size The least squares estimates of the regression parameters were as follows:
b0 = -0.025 b1 = 0.052 b2 = 1.14 The estimated standard errors were as follows:
sb1 = 0.023 sb2 = 0.35
a. Test, against the appropriate one-sided alternative, the null hypothesis that, for fixed family size, milk consumption does not depend linearly on income.
b. Find 90%, 95%, and 99% confidence intervals for b2.
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Related Book For
Statistics For Business And Economics
ISBN: 9781292436845
10th Global Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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