Problem 2. The following is a multiple linear regression model:

A portion of the computer analysis obtained from Microsoft Excel 2010 is shown below:

SUMMARY OUTPUT

Regression Statistics

R-Square0.988

Regression Standard Error12.420

Observations52

CoeffStdErrort Stat

Intercept286.429.66

X₁-0.310.06

X₂0.0000670.00007

1.Referring to the table above, what is the interpretation of the R² (5 points)?

2.Find the sum of squared residuals, SSE, and the sum of the squared difference between the observed dependent variable and its average, SST (10 points).

3.Calculate the confidence interval for the slope at the 95% confidence level (5 points).

4.Calculate the t-stat for the slope(5 points).

5.Are these two slopes statistically significant at 5% significance level (10 points)?