Using 20 observations, the multiple regression model y = Bo + B1x1 + B2x2 + ɛ was estimated. A portion of the regression results is as follows: Significance F 3.07E-08 df SS MS F Regression Residual 2 2.12E+12 1.06E+12 56.556 17 3.19E+11 1.88E+10 Total 19 2.44E+12 t Stat -7.505 Upper 95% -709,941 98,125 Coefficients Standard Error p-Value 0.000 Lower 95% Intercept -987,557 131,583 32,653 -1,265,173 X1 29,233 0.895 0.383 -39,660 X2 30,283 32,645 0.928 0.367 -38,592 99,158

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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At the 5% significance level, are the predictor variables jointly significant?

At the 5% significance level, evaluate each of the independent or predictor variables.

Think about the five common problems with regression models, what is most likely wrong with this model?

Using 20 observations, the multiple regression model y =
Bo + B1x1 + B2x2 + ɛ was estimated. A portion of the regression results is as follows:
Significance F
3.07E-08
df
SS
2.12E+12
MS
F
Regression
Residual
2
1.06E+12
56.556
17
3.19E+11
1.88E+10
Total
19
2.44E+12
t Stat
-7.505
p-Value
0.000
Upper 95%
-709,941
98,125
Coefficients
Standard Error
Lower 95%
Intercept
-987,557
29,233
131,583
32,653
-1,265,173
-39,660
X1
0.895
0.383
X2
30,283
32,645
0.928
0.367
-38,592
99,158
Transcribed Image Text:Using 20 observations, the multiple regression model y = Bo + B1x1 + B2x2 + ɛ was estimated. A portion of the regression results is as follows: Significance F 3.07E-08 df SS 2.12E+12 MS F Regression Residual 2 1.06E+12 56.556 17 3.19E+11 1.88E+10 Total 19 2.44E+12 t Stat -7.505 p-Value 0.000 Upper 95% -709,941 98,125 Coefficients Standard Error Lower 95% Intercept -987,557 29,233 131,583 32,653 -1,265,173 -39,660 X1 0.895 0.383 X2 30,283 32,645 0.928 0.367 -38,592 99,158
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