Chapter 12, Problem 109SE

a.

To determine

Test for the statistical significance of the regression at level of significance $\alpha =0.01$.

Find the P-value for the test and draw conclusions.

b.

To determine

Construct the t-test statistic for each of the regressors and draw necessary conclusions at level of significance $\alpha =0.01$.

c.

To determine

Plot the residuals versus $\widehat{y^{*}}$ and $x_3^{*}$.

Comment on the plots and compare with their counterparts obtained in Exercise 12-108 parts (f) and (g).