Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a regression analysis involving 30 observations, the following estimated regression equation was obtained. = 17.6 + 3.8 x 1 2.3 x 2 + 7.6

In a regression analysis involving 30 observations, the following estimated regression equation was obtained.

= 17.6 + 3.8x1 2.3x2 + 7.6x3 + 2.7x4

For this estimated regression equation, SST = 1,805 and SSR = 1,760.

(a)At = 0.05, test the significance of the relationship among the variables.

State the null and alternative hypotheses.H0: 1 = 2 = 3 = 4 = 0

Ha: One or more of the parameters is not equal to zero.

H0: 0 = 1 = 2 = 3 = 4 = 0 Ha: One or more of the parameters is not equal to zero.

H0: One or more of the parameters is not equal to zero. Ha: 1 = 2 = 3 = 4 = 0H0:

One or more of the parameters is not equal to zero. Ha: 0 = 1 = 2 = 3 = 4 = 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion

Do not reject H0. We conclude that the overall relationship is not significant.

Do not reject H0. We conclude that the overall relationship is significant.

Reject H0. We conclude that the overall relationship is not significant.

Reject H0. We conclude that the overall relationship is significant.

Suppose variables x1 and x4 are dropped from the model and the following estimated regression equation is obtained.

= 11.1 3.6x2 + 8.1x3

For this model, SST = 1,805 and SSR = 1,705.

(b)Compute SSE(x1, x2, x3, x4).

SSE(x1, x2, x3, x4)=

(c)Compute SSE(x2, x3).

SSE(x2, x3) =

(d)Use an F test and a 0.05 level of significance to determine whether x1 and x4 contribute significantly to the model.

State the null and alternative hypotheses.H0: One or more of the parameters is not equal to zero. Ha: 1 = 4 = 0H0:

One or more of the parameters is not equal to zero. Ha: 2 = 3 = 0

H0: 2 = 3 = 0 Ha: One or more of the parameters is not equal to zero.

H0: 1 = 4 = 0 Ha: One or more of the parameters is not equal to zero.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Do not reject H0. We conclude that x1 and x4 do not contribute significantly to the model.

Do not reject H0. We conclude that x1 and x4 contribute significantly to the model.

Reject H0. We conclude that x1 and x4 contribute significantly to the model.

Reject H0. We conclude that x1 and x4 do not contribute significantly to the model.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Analysis For Quantitative Finance

Authors: Daniele Ritelli, Giulia Spaletta

1st Edition

1351245104, 9781351245104

More Books

Students also viewed these Mathematics questions