The following regression equation was obtained using 5 independent variables. Gi

Question

The following regression equation was obtained using 5 independent variables. Given that a=0.05

1 - ASSUMING THAT YOU ARE USING A 2 TAILED TEST MAKE A DECISION USING THE COMPUTED P VALUE.

PLEASE SHOW ALL WORK ON PAPER PREFERABLY!

32. The following regression equation was obtained using the five independent v Given that a 0.05 The regression equation is sales 19.7 0.000 63 outlets 1.74 cars 0.410 income 2.04 age 0.034 bosses Predictor Coef SE Coef 5.422 0.022 19.672 3.63 Constant 0.002 638 0.823 outlets 0.000629 0.24 0.5530 1.7399 3.15 0.035 Car S 0.40994 0.04385 9.35 0.001 income 2.0357 0.8779 2.32 0.081 age 0.1880 bosses 0.0344 -0.18 0.864 R-Sq 99.4% R-Sq (adj) 98.7% 1.507 Analysis of Variance Source DE SS MS Regression 1593.81 318. 76 140.36 0.000 Residual Error 2.27 9.08 1602.89 Total (Minitab Software)

Explanation / Answer

For the independent variables:

H0 : there is no significant difference due to predictor variable(indepedent).

H1 : there is significant difference due to predictor variable.

The necessary condition to check for individual predictor variable is to check the p-value in the analysis table.

If p-value is low i.e, less than 0.05, then H0 is rejected and hence conclude that its presence is significant.

if the p-value is greater than 0.05, then its presence is not significant, and it isnt necessary for analysis .

Here, the predictor variables car and oncome are significant since its p-values are less than 0.05, whereas predictor variables outlet, bosses, age are not significant, since its p-vales are greater than 0.05.

For the overall significance:

The anova table is a vital part in regression analysis.

H0 : The regression coefficients are not significant in analysis i.e, 1 = 2= 3= 4= 5

H1 : The regression coefficients are significant in analysis i.e, 1 2 3 4 5

Here, the p-value in ANOVA table is less than 0.05, therefore we reject the null hypothesis and conclude that one or more regression coefficients are significant.

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