Question

1. Using the attached regression output, answer the following:

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.972971
R Square	0.946673
Adjusted R Square	0.944355
Standard Error	76.07265
Observations	49
ANOVA
	df	SS	MS	F	Significance F
Regression	2	4725757	2362878	408.3046	5.24E-30
Residual	46	266204.2	5787.049
Total	48	4991961
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	-0.46627	14.97924	-0.03113	0.975302	-30.6179	29.68537
X1	0.09548	0.084947	1.123997	0.266846	-0.07551	0.26647
X2	0.896042	0.205319	4.364141	7.16E-05	0.482756	1.309328

a. What is the interpretation of Signficance F, 5.24E-30?

b. What is the interpretation of the the p-value .266846 ?

c. What is the interpretation of the p-value 7.16E-05 ?

d. For X1= 100 and x2=75, what is the forecasted value of Y?

Answer 1

Que.a

The Signficance F, 5.24E-30, it is the p-value for F test, which is less than 0.05. Hence fitted regression equation is statistically significant.

Que.b

The p-value .266846 for t test for the variable X1 is greater than 0.05, hence X1 is not statistically significant. That is X1 does not contribute significantly in the model

Que.c

The p-value 7.16E-05 for t test for the variable X2 is less than 0.05, hence X2 is statistically significant. That is X2 contribute significantly in the model.

Que.d

The forecasted value of Y is,

Y = -0.46627 + 0.09548 X1 + 0.896042 X2

= -0.46627 + 0.09548 (100) + 0.896042 (75)

= 76.28488