Question

Need to understand if I am evaluating this correctly. Also where a correlation evaluation would fit?

Investment Homework Saved ge Layout Formulas Data Review View Help Tell me what you want to do A" A" | Ξ Ξ 9-2ewrap Text General ·E Ξ Ξ 트ー園Merge & Certor . $ ·% , too 48 Conditional Format as CellIns Formatting, Table, Styles' Conditional Format as Styles ㄧ Alignment Number Styles Testing for Overall Significance Ha: Not all Bi are equal to zero Test at alpha 0.05 pof 9.45382E-25 is c alpha of 0.0s Ho is Rejected At least one of the Indepentent Variables is related to Y Regression Statistics Multple R R Square Adjusted R Square 0.444457592 Moderate Standard Erro 0.673121806 Coefficient Conrelation high 0.453092906453% of inv % can be explained bythe regression equation Regression Resuidual 0.178313504 0.059437835 32.46940716 9.453825 p-value 190 0.215233775 0.001112809 Coefficients Stondard Error t stot 0.060829274 0.008869891 6.857950665 9.53923E11 0.043333164 0.078325383 0.041333164 0.07832538 Intercept Salary 8, Mortgage B Debt B 3.010900 30772 5466743714 14286 4.09734E-0 1.924525-08 4.097341-06 192452 06 Ho:B-0 α-0.05 p-4.23734E-19 pc a ted

Answer 1

Answer:

First part:

Need to understand if I am evaluating this correctly. Also where a correlation evaluation would fit?

Your interpretation for the first part is wrong.

P of 7.47752E-24 is < alpha of 0.05

Ho is rejected.

We conclude that at least one of the Bi is not zero.

Testing for Individual significance:

Test for B1, calculated P=0.954 which is > alpha of 0.05, Ho is not rejected, B1 is not significant.

Test for B2,B3,B4, calculated all three P values are < alpha of 0.05, Ho are rejected, B2, B3 and B4 are not significant.

Second Part:

Your interpretation is correct.

Test for B1, B2,B3, calculated all three P values are < alpha of 0.05, Ho are rejected, B1, B2 and B3 are significant.

R square is the percentage of variance in dependent variable is explained by the model irrespective of the model is significant or not .