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Look at the outcomes of the two regressions for CAT in the tables above. Which one of the two models will you choose as your
Look at the outcomes of the two regressions for CAT in the tables above. Which one of the two models will you choose as your final and why?
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None of the models above are acceptable because all Intercepts have non-significant P-values
Model based on S&P 500 coefficient only because P-value is not statistically significant compared to Crude Oil Prices
Model based on Crude Oil Prices only because P-value is significant and it has the higher R-Square
Regression Statistics Multiple R 0.30800 R Square 0.09486 Adjusted R Square 0.07104 Standard Error 0.05418 Observations 40 ANOVA df Regression Residual Total SS 0.01169 0.11154 0.12323 F 3.98259 1 38 39 MS 0.01169 0.00294 Intercept S&P 500 Coefficients Standard Error -0.01174 0.00950 0.82575 0.41378 t Stat -1.23606 1.99564 P-value 0.22402 0.05318 Regression Statistics Multiple R 0.57570 R Square 0.33143 Adjusted R Square 0.31383 Standard Error 0.04656 Observations 40 ANOVA df F 18.83752 Regression Residual Total 1 38 39 SS 0.04084 0.08239 0.12323 MS 0.04084 0.00217 Intercept Crude Oil Prices Coefficients Standard Error 0.00383 0.00756 0.40137 0.09248 t Stat 0.50667 4.34022 P-value 0.61531 0.00010Step by Step Solution
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