Consider the estimated regression equation ŷ = 23 +0.5x₁1.5x2 + 10x3 - 2.5x4, and let s₁ = 2.03, Sb₂ = 0.23, Sb3 = 2.35, and Sba 1.30. Assume the data set used to estimate the model contains 25 observations. Which range best describes the p-value of the appropriate test statistic used to test the significance of the value of the coefficient of x4? (a) (b) (c) (d) (e) P≥ 0.10 0.05 p < 0.10 0.02

Consider the estimated regression equation ŷ = 23 +0.5x₁1.5x2 + 10x3 - 2.5x4, and let s₁ = 2.03, Sb₂ = 0.23, Sb3 = 2.35, and Sba 1.30. Assume the data set used to estimate the model contains 25 observations. Which range best describes the p-value of the appropriate test statistic used to test the significance of the value of the coefficient of x4? (a) (b) (c) (d) (e) P≥ 0.10 0.05 p < 0.10 0.02

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

20. Consider the estimated regression equation ŷ = 23 +0.5x₁1.5x2 + 10x3 - 2.5x4, and let sb₁ = 2.03,
Sb₂ = 0.23, Sb3 = 2.35, and sb = 1.30. Assume the data set used to estimate the model contains 25
observations. Which range best describes the p-value of the appropriate test statistic used to test the
significance of the value of the coefficient of x4?
(a) P≥ 0.10
(b)
(c)
(d)
(e)
0.05 ≤p < 0.10
0.02 p<0.05
0.01 < p < 0.02
P < 0.01

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