In: Statistics and Probability
| X1 | X2 | Y |
| 11 | 4 | 9 |
| 6 | 8 | 4 |
| 8 | 4 | 6 |
| 8 | 5 | 5 |
| 10 | 7 | 9 |
Conduct an ANOVA test. Is the model significant? If so, at what level? Please show work
| 9 | X1 | X2 | |||||
| 4 | 1 | 11 | 4 | ||||
| Y= | 6 | X= | 1 | 6 | 8 | ||
| 5 | 1 | 8 | 4 | ||||
| 9 | 1 | 8 | 5 | ||||
| 1 | 10 | 7 | |||||
| 1 | 1 | 1 | 1 | 1 | |||
| X'= | 11 | 6 | 8 | 8 | 10 | ||
| 4 | 8 | 4 | 5 | 7 | |||
| 5 | 43 | 28 | |||||
| X'X= | 43 | 385 | 234 | ||||
| 28 | 234 | 170 | |||||
| 13.85233 | -0.98187 | -0.93005 | |||||
| (X'X)-1= | -0.98187 | 0.085492 | 0.044041 | ||||
| -0.93005 | 0.044041 | 0.098446 | |||||
| 33 | |||||||
| X'Y= | 301 | ||||||
| 180 | |||||||
| -5.82383 | |||||||
| B^=(X'X)-1X'Y= | 1.259067 | ||||||
| 0.284974 | |||||||
| 9.165803 | |||||||
| Fitted (Y^)= | 4.010363 | ||||||
| 5.388601 | |||||||
| 5.673575 | |||||||
| 8.761658 | |||||||
| -0.1658 | |||||||
| -0.01036 | |||||||
| Residual ( r)=Y-Y^= | 0.611399 | ||||||
| -0.67358 | |||||||
| 0.238342 | |||||||
| SS Residual=r'r= | 0.912 | ||||||
| SS Total=(Y-M)'(Y-M)= | 21.2 | , M= mean of the Y variable=6.6 |

Hypothesis:
Ho: Both the slopes parameters are equal to zero.
H1: At least one slope parameter does not equal to zero.
Conclusion: The p-value is 0.043 and less than 0.05 level of significance. Hence, reject the null hypothesis and so the model is significant. The level is 0.05.