The accompanying table shows the regression results when estimating y = β0 + β1x1 + β2x2 + β3x3 + ε.
df | SS | MS | F | Significance F | |
Regression | 3 | 453 | 151 | 5.03 | 0.0030 |
Residual | 85 | 2,521 | 30 | ||
Total | 88 | 2,974 | |||
Coefficients | Standard Error | t-stat | p-value | ||
Intercept | 14.96 | 3.08 | 4.80 | 0.0000 | |
x1 | 0.87 | 0.29 | 3.00 | 0.0035 | |
x2 | 0.46 | 0.22 | 2.09 | 0.0400 | |
x3 | 0.04 | 0.34 | 0.12 | 0.9066 |
At the 5% significance level, which of the following explanatory
variable(s) is(are) individually significant?
Multiple Choice:
Only x1
Only x3
x1 and x2
x2 and x3
Solution:
If the p-value is less than
value, then it is statistically significant.
Given the value of
=5%=0.05
Let us check the above condition to find the result.
p-value | Comparison | Result | |
x1 | 0.0035 | 0.0035<0.05 | Significant |
x2 | 0.04 | 0.04<0.05 | Significant |
x3 | 0.9066 | 0.9066>0.05 | Not significant |
From the above table we can see that the explanatory variables
x1 and x2 is significant because its
p-value is less than
value.
So option 3 is the correct answer.
x1 and x2
Get Answers For Free
Most questions answered within 1 hours.