Given that the following demand relationship between the quantity demanded (Q) a

Question

Given that the following demand relationship between the quantity demanded (Q) and its per unit price (P) is estimated by a simple regression equation on the basis of 20 observations, answer Questions 16 through 21: The corresponding ANOVA table shows only the sums of squares as follows: If the calculated t- value for the slope coefficient is -1.9, you would find the table value of t to be ___ and thus, conclude to ________ the null hypothesis of the slope coefficient being equal to zero at the 5% significance level. 1.7247; reject 1.7341; accept 1.7341;reject 2.1009; accept e 2.1009; reject Based on the sums of squares given, the coefficient of determination is _____ and the corresponding calculated F-statistic is _____. 0.5714; 24 0.4286; 24. 0.5714; 1.333 0.4286: 1.333 0.75; 1.333 Given that an F-test is to be done for the joint significance of coefficients, you would find that the degrees of freedom for the numerator and the denominator are respectively __________ and _______. 1; 19 1; 18 2; 20 2; 19 2; 18

Explanation / Answer

19) We have to find critical value.

Number of pair = n = 20

Degrees of freedom = n - 2 = 18

Critical value = 2.1009

Critical value > | t | we accept null hypothesis.

So correct option is d. 2.009: accept

20 ) Coefficient of determination = SSR / SST ( SST = SSR + SSE = 200 + 150 = 350 )

Coefficient of determination = 200 / 350 = 0.5714

F statistic = MSR / MSE

MSR = SSR / df = 200 / 1 = 200

MSE = SSE / df = 150 / 18 = 8.33333

F statistic = MSR / MSE = 200 / 8.33333 = 24

Correct option is a) 0.5714:24

21 ) Degreess of freedom are 1 and 18 because there are only one regressor and total number of pair are 20

So correct option is b) 1: 18

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