Three regressions are fitted. The corresponding least Square estimates and MSE are given below. The numbers in parentheses are corresponding standard errors

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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Q2: Three regressions are fitted. The corresponding least Square estimates
and MSE are given below. The numbers in parentheses are corresponding
standard errors
Y regressed on
B
MSE
B₂
B3
X₁, X2, X3, X₁ X₂
135 8.75
2.5
1.25
31.25
(1.98)
(1.98)
(1.98)
(1.98)
X1, X₂
135
8.75
2.5
27.5
(1.85) (1.85)
(1.85)
X₁
135
8.75
31.25
(1.98)
(1.98)
If the adjusted R² is used to select the optimal set of predictors from the three candidates
X1,(X1, X2), (X1, X2, X3)
1- Which candidate (s) would be selected? Please explain briefly.
2- Which of the three candidates in part (1) has or have the largest R²
3- Do you think there is a multicollinearity? Please explain briefly.
Bo
Transcribed Image Text:Q2: Three regressions are fitted. The corresponding least Square estimates and MSE are given below. The numbers in parentheses are corresponding standard errors Y regressed on B MSE B₂ B3 X₁, X2, X3, X₁ X₂ 135 8.75 2.5 1.25 31.25 (1.98) (1.98) (1.98) (1.98) X1, X₂ 135 8.75 2.5 27.5 (1.85) (1.85) (1.85) X₁ 135 8.75 31.25 (1.98) (1.98) If the adjusted R² is used to select the optimal set of predictors from the three candidates X1,(X1, X2), (X1, X2, X3) 1- Which candidate (s) would be selected? Please explain briefly. 2- Which of the three candidates in part (1) has or have the largest R² 3- Do you think there is a multicollinearity? Please explain briefly. Bo
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