Question

2. Load the data from Table 3 into STATA Table 3 Run a regression with R as the dependent variable and W and X as the independent variables write the equation ( with ) you are estimating below: a. bs TV. 4 b. 6 8 8 3 8 18 c. Correctly label all β values and mark the standard errors. 4 d, which values are significantly different from 0 at a 5% level? Table 4 e. Fill out the blank valuesfor Table 4 below. 4 If the value of W increases by 4, how much does the estimated value of R increase? f. g If the value of X increases by 7, how much does the estimated value of R increase?

Please answer all questions and show work. thank you!

Answer 1

Solution-

A. After running the regression, output is-

SUMMARY OUTPUT Regression Statistics MultipleR R Square Adjusted R Square Standard Error Observations 0.91067834 0.829335039 0.658670079 1.683163197 ANOVA MS Significance F Regression Residual Total 2 2 4 27.5339233 13.76696165 4.859434 0.170664961 5.666076696 2.833038348 33.2 Coefficients Standard Error t Stat 9.9604719765.826203438 -1.70959907 0.229467-35.0286021 15.10765815 2.145722714 0.962268474 2.229858684 0.1555181.9945843636.286029791 0.64660767 0.208462552 3.101792934 0.09011 -0.250334297 1.543549636 P-value Lower 95% Upper 95% Intercept

B. Equation is-

R = -9.96047 + 2.1457 W + 0.6466 X

C. Slope of W variable = 2.1457 and slope of X variable = 0.6466, standard error of W = 0.9623 and standard error of X = 0.2085

D. Testing the significance of above variables, we compare the p-values with 5% level of significance,

For W variable, 0.155 > 0.05 hence null hypothesis is not rejected and variable W is not significant.

For X variable, 0.09 > 0.05 hence null hypothesis is not rejected and variable X is not significant.

E. Graph-

Observation Predicted Y ел2 1 1.855457227 0.144542773 0.020893 2 4.6477876111.64778761 2.715204 3 8.086725664 -0.08672566 0.007521 4 8.115634218-0.11563422 0.013371 5 5.294395281.70560472 2.909087

F. When W increases by 4, then R increases by 4 * 2.1457 = 8.5828

G. When X increases by 7 , then R increases by 7* 0.6466 = 4.5262

Answers

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