Econometrics

A three variable regression model of the form: Yt=0+1X1t+2X2t+ut, where t is the unit of observation and there are two explanatory variables X1t and X2t, gave the following ANOVA (Analysis of Variance) results: Instructions: 1. Calculate the sample size, the value of RSS and degrees of freedom of ESS and RSS. 2. Calculate the R squared, and the adjusted R squared. Explain why the adjusted R squared is generally a preferred measure of model fit. 3. Test the joint hypothesis that X1t and X2t have no statistical influence on Y, using the =0.05 level of significance. 4. Explain the relationship between the F statistics and R squared in a linear regression model. A three variable regression model of the form: Yt=0+1X1t+2X2t+ut, where t is the unit of observation and there are two explanatory variables X1t and X2t, gave the following ANOVA (Analysis of Variance) results: Instructions: 1. Calculate the sample size, the value of RSS and degrees of freedom of ESS and RSS. 2. Calculate the R squared, and the adjusted R squared. Explain why the adjusted R squared is generally a preferred measure of model fit. 3. Test the joint hypothesis that X1t and X2t have no statistical influence on Y, using the =0.05 level of significance. 4. Explain the relationship between the F statistics and R squared in a linear regression model