Question

For this assignment I have to analyze the regression (relationship between 2 independent variables and 1 dependent variable). Below is all of my data and values. I need help answering the questions that are at the bottom. Questions regarding the strength of the relationship

Model: Median wage (y) = 40.3774 - 2.0614 * Population + 0.0284 * GDP

Predictor	Coefficient	Estimate	Standard Error	t-statistic	p-value
Constant	B0	40.3774	1.1045	36.558	0
Population	B1	-2.0614	0.5221	-3.948	0.0003
GDP	B2	0.0284	0.007	4.0403	0.0002

R-Squared	R2 = 0.2538
Adjusted R-Squared	R2 adj = 0.2227
Residual Standard Error	5.6087 on 48 degrees of freedom
Overall F-statistic	8.1625 on 2 and 48 degrees of freedom
Overall p-value	0.0009

Analysis of Variance Table

Source	df	SS	MS	F-statistic	p-value
Regression	2	513.5541	256.777	8.1625	0.0009
Residual Error	48	1509.9841	31.458
E=Total	50	2023.5381	40.4708

1. Find the model with the most explanatory power and significant estimates. Describe what your regression output shows regarding the statistical properties of your model.

2. What does this model suggest regarding the relationships between your variables?

3. Do you think your data more or less satisfy OLS regression assumptions? Explain why? Or why not?  

4. Based on 3), do you think your analysis is reliable?

Answer 1

Sol:

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