Using the data on consumption expenditure Y, Income X2, and wealth X3, following output is generated: Dependent Variable: Y Method: Least Squares Date: 11/22/21 Time: 11:44 Sample: 1 10 Included observations: 10 t-Statis tic Variable Coefficient Std. Error Prob. X2 0.941537 0.822898 1.144172 0.2902 X3 -0.042435 0.080664 -0.526062 0.6151 24.77473 6.752500 3.668972 0.0080 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.963504 Mean dependent var S.D. dependent var 6.808041 Akaike info criterion 111.0000 0.953077 31.42893 6.917411 324.4459 Schwarz criterion 7.008186 -31.58705 Hannan-Quinn criter. 6.817830 92.40196 Durbin-Watson stat 2.890614 0.000009 a) State the estimated OLS regression. Identify the slope coefficients that may not be significant and provide justifications for your answer. b) Specify and interpret the value of R² for the regression.

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6th Edition
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Author:Amos Gilat
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Using the data on consumption expenditure Y, Income X2, and wealth X3, following output is
generated:
Dependent Variable: Y
Method: Least Squares
Date: 11/22/21 Time: 11:44
Sample: 1 10
Included observations: 10
Variable
Coefficient
Std. Error
t-Statistic
Prob.
X2
0.941537
0.822898
1.144172
0.2902
X3
-0.042435
0.080664
-0.526062
0.6151
24.77473
6.752500
3.668972
0.0080
Mean dependent var
S.D. dependent var
R-squared
0.963504
111.0000
Adjusted R-squared
0.953077
31.42893
S.E. of regression
6.808041
Akaike info criterion
6.917411
Sum squared resid
Log likelihood
324.4459
Schwarz criterion
7.008186
-31.58705
Hannan-Quinn criter.
6.817830
F-statistic
92.40196
Durbin-Watson stat
2.890614
Prob(F-statistic)
0.000009
a) State the estimated OLS regression. Identify the slope coefficients that may not be
significant and provide justifications for your answer.
b) Specify and interpret the value of R² for the regression.
Transcribed Image Text:Using the data on consumption expenditure Y, Income X2, and wealth X3, following output is generated: Dependent Variable: Y Method: Least Squares Date: 11/22/21 Time: 11:44 Sample: 1 10 Included observations: 10 Variable Coefficient Std. Error t-Statistic Prob. X2 0.941537 0.822898 1.144172 0.2902 X3 -0.042435 0.080664 -0.526062 0.6151 24.77473 6.752500 3.668972 0.0080 Mean dependent var S.D. dependent var R-squared 0.963504 111.0000 Adjusted R-squared 0.953077 31.42893 S.E. of regression 6.808041 Akaike info criterion 6.917411 Sum squared resid Log likelihood 324.4459 Schwarz criterion 7.008186 -31.58705 Hannan-Quinn criter. 6.817830 F-statistic 92.40196 Durbin-Watson stat 2.890614 Prob(F-statistic) 0.000009 a) State the estimated OLS regression. Identify the slope coefficients that may not be significant and provide justifications for your answer. b) Specify and interpret the value of R² for the regression.
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