Question

Provide an interpretation of your regression results. You should include the goodness of fit, the F-stat, and the signs and significance of the estimated coefficients in your discussion. Remember that if P-values are small Excel will report them in scientific notation.

1 SUMMARY OUTPUT Regression Statistics 4 Multiple R 5 RSquare 6 Adjusted R Sq 0.468934927 7 Standard Erro 3.938138211 8 Observations 0.706296033 0.498854086 72 10 ANOVA df MS Significance F 12 Regression 13 Residual 14 Total 15 16 17 Intercept 18 Pbt 19 Pbt-2 20 Pet-2 21 S 4 1034.346503 258.5866258 16.673399331.5742E-09 67 1039.098482 15.50893257 71 2073.444985 Coefficients Standard Erro 159.0488071 3.93716491540.39678564 9.09165E-49 151.1901931 166.90742 151.1901931 166.9074212 3.127362947 16.90087216 -0.185041513 0.85375548-36.86164496 30.606919-36.86164496 30.60691907 41.71811542 14.799993512.818792818 0.006331759 12.17720473 71.2590261 12.17720473 71.25902611 0.582843466 1.987052434 -0.293320627 0.770183717 -4.549016724 3.38332979 -4.549016724 3.383329791 7.521075484 1.111462813 -6.766826022 3.95096E-09-9.7395645435.30258642 -9.7395645435.302586424 tStat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

Answer 1

Please see the following observations below:

1. The R square, adj R square values are high, indicating that the regression is a good fit. Also, since the F stat > F crit, we can reject the null hypothesis that independent variables do not affect dependent variable in our model
Hence, our conclusion is that Dependent variable do have a relationship with the independent variables, somewhat explained by the model.

2. Regarding the coefficients, high Standard errors in Pbt 1 and Pbt 2 indicates that the mean of the sample differs from the mean of the population. This may indicate a selection bias, incorrect sampling etc.

3. From t-tests, we can say that all variables have an impact on the model, as all of them are signficant.