Using 20 observations, the multiple regression model y produced the following re

Question

Using 20 observations, the multiple regression model y produced the following relevant Bo + B1x12x2 s was estimated. Excel results df MS 2.60E-08 Regression 2.09E+112 1.07E+112 57.8330 Residual Total 17 3.13E+ 19 2.52E+112 111 1.86E+110 Coefficients -987,432 29,489 29,665 Standard Error p-value 0.0000 0.8923 0.3847 0.9111 0.3750 Lower 95% -1,263,347 -40,236 -39,026 Upper 95% -711,517 99,214 98,356 tStat -7.5505 Intercept 130,777 33,048 32,558 a. At the 5% significance level, are the explanatory variables jointly significant? O Yes, since the p-value of the appropriate test is less than 0.05 O No, since the p-value of the appropriate test is more than 0.05 O Yes, since the p-value of the appropriate test is more than 0.05 O No, since the p-value of the appropriate test is less than 0.05 b. At the 5% significance level, is each explanatory variable individually significant? O Yes, since both p-values of the appropriate test are less than 0.05 O Yes, since both p-values of the appropriate test are more than 0.05 O No, since both p-values of the appropriate test are not less than 0.05 O No, since both p-values of the appropriate test are not more than 0.05 c. What is the likely problem with this model? Multicollinearity since the standard errors are biased Multicollinearity since the explanatory variables are individually and jointly significant. Multicollinearity since the explanatory variables are individually significant but jointly insignificant. Multicollinearity since the explanatory variables are individually insignificant but jointly significant.

Explanation / Answer

(a) Yes, since the p-value of the appropriate test is less than 0.05 (Option 1).

(b) No, since both p-values of the appropriate test are not less than 0.05 (Option 3).

(c) Multicollinearity since the explanatory variables are individually insignificant but jointly significant (Option 4).

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

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