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Q8. The model y = 30 + 31x1 + 32x2 + e was fitted to a sample of 25 families in order to study the consumption of breakfast cereal y, in kg per week, as a function of household income, x1 and household adult equivalents, x2. The least squares estimates of the regression parameters were b0 = 0.03, 191 = 0.05, and 192 = 1.1. The coefficient standard errors were 5:21 = 0.02 and sbz = 0.38. The total sum of squares and the error sum of squares were found to be 165.8 and 66.32, respectively. A. Find and interpret the coefficient of determination and the coefficient of multiple correlation. (3 points) B. Without doing any additional calculations, briey describe whether the adjusted coefficient of determination will be smaller or larger than the coefficient of determination calculated in part (a). (2 points) C. Test against the appropriate one-sided alternative, the null hypothesis that, for a fixed family size, cereal consumption does not linearly depend on income. Use a = 0.05. (3 points) D. Using a 5% significance level, test the null hypothesis H0: 61 = 62 = 0 against the alternative H1: at least one [3,- i 0 (j = 1,2). (2 points)

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