In a multiple regression equation, two independent variables are considered, and

Question

In a multiple regression equation, two independent variables are considered, and the sample size is 26. The regression coefficients and the standard errors are as follows.

b1 = 1.468 Sb1 = 0.89

b2 = -1.084 Sb2 = 0.88

Conduct a test of hypothesis to determine whether either independent variable has a coefficient equal to zero. Would you consider deleting either variable from the regression equation? Use the .05 significance level. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.) H0: 1 = 0 H0: 2 = 0 H1: 1 0 H1: 2 0 H0 is rejected if t < -2.069 or t > 2.069

t for b1 coefficient =

t for b2 coefficient =

______ (the first and second // or neither the first or second// or the first) jvariable can be deleted.

Explanation / Answer

t for b1 coefficient = b1 / Sb1 = 1.468 / 0.89 = 1.6494.

t for b2 coefficient = b2 / Sb2 = - 1.084 / 0.88 = - 1.2318.

Since test statistic for b1 coefficient = 1.6494 < 2.069 and test statictic for b2 coefficient = - 1.2318 > - 2.069,

we fail to reject H0 based on the given critical value.

Hence the first and second variable can be deleted. (Ans).

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