Question
We are asked to estimate the parameters of the following population regression function: logy=a+b 1 *logx 1 +b 2 *logx 2 +b 3 *logx 3
We are asked to estimate the parameters of the following population regression function:
logy=a+b1*logx1+b2*logx2+b3*logx3+u, where u is the error term.
After the estimation is done, we are asked to test for the following hypothesis:
H0:b1=b2=b3=0
To do so, we rely on the summary output tables below:
Regression Statistics | |||||
Multiple R | 0.6165333 | ||||
R Square | 0.38011331 | ||||
Adjusted R Square | 0.37848915 | ||||
Standard Error | 0.32877648 | ||||
Observations | 1149 | ||||
ANOVA | |||||
df | SS | MS | F | Significance F | |
Regression | 3 | 75.8940502 | 25.2980167 | 234.037253 | 2.094E-118 |
Residual | 1145 | 123.7676 | 0.10809397 | ||
Total | 1148 | 199.66165 |
Group of answer choices (choose right answer)
a. We can safely reject the aforementioned null hypothesis, considering the relatively high value of the F statistics.
b. We can safely reject the aforementioned null hypothesis, considering the relatively high value of the R Square.
c. We cannot reject the aforementioned null hypothesis, considering the relatively low value of the R Square.
d. We can safely reject the aforementioned null hypothesis, considering the relatively low value of the R Square.
e. We cannot reject the aforementioned null hypothesis, considering the relatively low value of the F statistics.
f. We cannot reject the aforementioned null hypothesis, considering the relatively high value of the F statistics.
g. We can safely reject the aforementioned null hypothesis, considering the relatively low value of the F statistics.
e. We cannot reject the aforementioned null hypothesis, considering the relatively high value of the R Square.
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