Suppose you are working with the automobile data set and got the following print

Question

Suppose you are working with the automobile data set and got the following printout. Assume that you already tested the quadratic terms and dropped them out of the model. The following printout was created. Least Squares Linear Regression of Price Predictor VariablesCoefficient Std Error T PVIF Constant 20339.7 1039.20 19.57 0.0000 0.0 Mileage 0.06642 0.02264 -2.93 0.0052 1.8 Model X1X2 1255.69 1454.48 0.86 0.3924 7.0 0.04875 0.03590 -1.36 0.2244 6.6 Following our Project Game Plan, what would you do next? O Stop. Drop the interaction term from this model and you are finished model building. O Conduct a global F-test on this model to determine if anything is useful in predicting price O Use this printout and continue testing by conducting a t-test on the Model variable OStop! You are finished model building. This is your best model. Drop the interaction term from the model and continue testing by conducting a t-test on the Model term.

Explanation / Answer

Since P-value for Model term and X1X2 term > 0.05, and VIF for Model term and X1X2 term > 5,

So we first drop the interaction term from the model and then one should conduct a t test on model term.

ans-> Drop the interaction term from the model and continue testing by conducting a t-test on the Model term.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.