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(a) Consider the following regression. Traffic in city = 0.04 + 0.2 Vehicles + 0.4 Pop - 0.08 Petrol + 0.05 Gas se= (0.03)(-0.17)(0.3)(-0.1)(-0.04) n
(a)Consider the following regression.
Traffic in city = 0.04 + 0.2 Vehicles + 0.4 Pop - 0.08 Petrol + 0.05 Gas
se= (0.03)(-0.17)(0.3)(-0.1)(-0.04)
n = 20,R2 = 0.96
Where;
Vehicles = number of vehicles in city
Pop.= population
Petrol= petrol price
Gas= gas price
(i)Can you detect any abnormality with the results? What is it? How do you know that?(7 marks)
(ii)What is the reason for the preceding problem detected above? What do you propose to rectify the issue?(6 marks)
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