View the step-by-step solution to:

Inference basics. You run a multiple regression with 66 cases and 5 explanatory variables.

1. Inference basics.
You run a multiple regression with 66 cases and 5 explanatory variables.
(a) What are the degrees of freedom for the F statistic for testing the null hypothesis that
all five of the regression coefficients for the explanatory variables are zero?
(b) Software output gives MSE = 36. What is the estimate of the standard deviation Sigma of the model?
(c) The output gives the estimate of the regression coefficient for the first explanatory
variable as 12.5 with a standard error of 2.4. Find a 95% confidence interval for the true value of this coefficient.
2. Bank auto loans.
Banks charge different interest rates for different loans. A random sample of 2229 loans made by banks for the purchase of new automobiles was studied to identify variables that
explain the interest rate charged. A multiple regression was run with interest rate as the response variable and 13 explanatory variables.
(a) The F statistic reported is 71.34. State the null and alternative hypotheses for this
statistic. Give the degrees of freedom and the P-value for this test. What do you
(b) The value of R2 is 0.297. What percent of the variation in interest rates is explained by the 13 explanatory variables?
Sign up to view the entire interaction

Top Answer

We can only answer your free 3 questions one at a time. You have two options to get your questions answered:... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online