Question

In the following table, which parameter is the most significant; least significant; why?

SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.9613 0.9241 0.9222 1425.3397 200 ANOVA Significance df MS Regression Residual Total 479410417802.47 95882083560.49 472.4892 39368362197.53 518778780000.00 0.00 194 199 202929702.05 Upper 95% value 2.34 0.0201 CoefficientsStandard Erro t Stat Lower 95% 45482.366 -10383.543 11.088 738.388 0.014 2.546 19403.8863 3153.7202 10.4859 175.8223 0.0023 1.2209 Intercept V1 v2 7217.90 83746.83 -3.290.001216602.68 -4164.41 31.77 391.67 1085.11 0.02 0.14 1.06 0.2916 0.0000 0.0000 -9.59 4.20 6.37 2.09 V4 V5 0.038 4.95

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Answer #1

We know that if p-value is less than 0.05, then that variable is significant but if p-value is approximately zero, then that variable is highly significant.

In last table, most significant variable is v3 and v4. Because it's p-value is 0.0000 and 0.0000 respectively ( approximately zero). Least significant variable is v2 which p-value is 0.2916 (i.e greater than 0.05). Therefore, v2 is not significant variable.

Hence most significant variable is v3 and v4; least significant variable is v2.

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