Question

In a regression analysis of a first-order model involving 3 predictor variables and 25 observations, the following estimated regression equation was developed. Ŷ = 10 - 18x1 + 3x2 + 14x3 Also, the following standard errors and the sum of squares were obtained. sb1 = 3 sb2 = 6 sb3= 7 SST = 4800 SSE = 1296 At the 5% level, the coefficient of x2 a. is not found to be significant. b. is significant. c. cannot be tested, because not enough information is provided. d. should be estimated again, because it is incorrect in the above equation

Answer 1

a. is not found to be significant.

Explanation:

Regression analysis is a statistical technique which is used for forecasting. It determines the relationship between two variables. It determines the relationship of two or more dependent and independent variables. It is widely used in stats to find trend in the data. It helps to predict the values of dependent and independent variables. In the given question, there are 25 observations and the regression equation is given. X and Y are considered as dependent variables.