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In a study of quarterly revenue for oompen'glr XYZ, a multiple linear regression model is estimated and the following Excel output is obtained. The

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a.       Find the appropriate measure of the fitness of the model. State its value and interpret it.

b.       Performance the individual t-test on the coefficients. State the hypotheses, p-value and conclusion

c.       Comment on the relationship between household net worth and the revenue based on the estimated coefficient. Are the relationships expected? If not, what could be the possible explanation? Hint: the correlation between household net worth and disposable income is 0.96.

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In a study of quarterly revenue for oompen'glr XYZ, a multiple linear regression model is estimated and the following Excel output is obtained. The independent variables
included are Household Net worth and Disposable Income. SUMMARY OUTPUT
Multiple Ft 0.??2204349
|'-'l Square 059629955?
Animated Ft Square (1506331645
Standard Error 0833633303
Observations 84
ANOVA
of 38 MS F Significance F Regression 2 SEN-656.6? 2831032834 50.02 0.00
Fleeidual 81 3570863138 440847.30
Total 83 8845328833 Ooafiioients Standard Enor tStat P-value
Intercept 4389.23 925.04 4.5829 0.0116
Household Net Worth 00096 0.0041 .2333? 0.0195
manageable Income 0.637? 04725 3.5801 0.0006 a. Find the appropriate measure of the fitnees oi the model. State its value and interpret it. b. Performance the individual thteet on the metfioienta. State the hypotheses, p-value and owniusion c. Comment on the relationship between household net worth and the revenue based on the estimated coefficient. Are the relationships expected? It not, what
could be the possible emanation? Hint: the correlation between household net worth and disposable income is 0.96.

Top Answer

a. Coefficient of determination R2 is used to determine goodness of fit of a model, b. Null... View the full answer

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