Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Is at least one of the two variables (weight and horsepower) significant in the model? Run the overall F-test and provide your interpretation at 5%

image text in transcribed
  1. Is at least one of the two variables (weight and horsepower) significant in the model? Run the overall F-test and provide your interpretation at 5% level of significance. See Step 5 in the Python script. Include the following in your analysis:
    1. Define the null and alternative hypothesis in mathematical terms and in words.
    2. Report the level of significance.
    3. Include the test statistic and the P-value. (Hint: F-Statistic and Prob (F-Statistic) in the output).
    4. Provide your conclusion and interpretation of the test. Should the null hypothesis be rejected? Why or why not?
  2. What is the slope coefficient for the weight variable? Is this coefficient significant at 5% level of significance (alpha=0.05)? (Hint: Check the P-value,, for weight in Python output. Recall that this is the individual t-test for the beta parameter.) See Step 5 in the Python script.
  3. What is the slope coefficient for the horsepower variable? Is this coefficient significant at 5% level of significance (alpha=0.05)? (Hint: Check the P-value,, for horsepower in Python output. Recall that this is the individual t-test for the beta parameter.) See Step 5 in the Python script.
  4. What is the purpose of performing individual t-tests after carrying out the overall F-test? What are the differences in the interpretation of the two tests?
  5. What is the coefficient of determination of your multiple regression model from Module Six? Provide appropriate interpretation of this statistic. **This is step 5
image text in transcribed
OL5 Regression Results Dep. Variable: mpg R-squared: 0.835 Model : OLS Adj. R-squared: 0. 823 Method: Least Squares F-statistic: 68.39 Date: Fri, 10 Jun 2022 Prob (F-statistic) : 2.70e-11 Time: 02 :14:02 Log-Likelihood: -69.855 No. Observations: 30 AIC: 145.7 Of Residuals: 27 BIC: 149.9 Of Model: 2 Covariance Type: nonrobust coef std err t P> t [0. 025 0.975] Intercept 37 .5934 1. 644 22.860 0.000 34.219 40.968 wt -3.9334 0.642 -6.123 0.090 -5.252 -2. 615 hp -0. 0324 0.009 -3.515 0. 002 -0.051 -0.013 Omnibus : 4.567 Durbin-Watson: 2.063 Prob (Omnibus ) : 0.102 Jarque-Bera (JB): 3.422 Skew: 0. 821 Prob (JB) : 9.181 Kurtosis: 3. 201 Cond. No. 590. Warnings : [1] Standard Errors assume that the covariance matrix of the errors is correctly specified

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Mathematics questions