1) What does F-test for significance tell us? 2) What does t-test for significance tell us? 3) Can you tell from the 95% confidence intervals whether the two independent variables are statistically significant? Explain.
1) What does F-test for significance tell us?
2) What does t-test for significance tell us?
3) Can you tell from the 95% confidence intervals whether the two independent variables are statistically significant? Explain.
4) Is there any multicollinearity problem in the above regression model? How do you know?
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SUMMARY OUTPUT |
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Regression Statistics |
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Multiple R |
0.908603921 |
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R Square |
0.825561086 |
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Adjusted R Square |
0.818138154 |
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Standard Error |
398.0910071 |
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Observations |
50 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
2 |
35250755.67 |
17625377.84 |
111.2176468 |
1.50876E-18 |
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Residual |
47 |
7448393.148 |
158476.4499 |
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Total |
49 |
42699148.82 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
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Intercept |
1304.904779 |
197.6548431 |
6.601936785 |
3.28664E-08 |
907.2745236 |
1702.535035 |
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Annual Household Income ($) |
0.033133009 |
0.003967906 |
8.350250854 |
7.68206E-11 |
0.025150612 |
0.041115406 |
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Household |
356.2959015 |
33.20089044 |
10.73151644 |
3.12342E-14 |
289.5043251 |
423.0874779 |
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