Question

Identify and interpret the t tests for each of the coefficients (one separate paragraph for each variable, in numerical order): 1. Are the signs of the coefficients as expected? If not, why not?2. For each of the coefficients, interpret the numerical value. 3. Using the p-value approach, is the null hypothesis for the t test rejected or not rejected for each coefficient? Why or why not?4. Interpret the implications of these findings for the variable. 5. Identify the variable with the greatest significance.

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.60
R Square	0.36
Adjusted R Square	0.26
Standard Error	9.25
Observations	30.00
ANOVA
	df	SS	MS	F	Significance F
Regression	4.00	1212.46	303.12	3.54	0.02
Residual	25.00	2139.14	85.57
Total	29.00	3351.60
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-66.22	61.21	-1.08	0.29	-192.28	59.83	-192.28	59.83
K/BB	5.76	1.87	3.07	0.01	1.90	9.63	1.90	9.63
K/9	-2.14	1.48	-1.45	0.16	-5.18	0.90	-5.18	0.90
P/IP	4.55	3.83	1.19	0.25	-3.34	12.44	-3.34	12.44
W#	0.77	16.82	0.05	0.96	-33.87	35.41	-33.87	35.41

Answer 1

1. Are the signs of the coefficients as expected? If not, why not?

Yes, because some variables are positively related and some as negative.

2. For each of the coefficients, interpret the numerical value.

For every additional K/BB, y will increase by 5.76.

For every additional K/9, y will decrease by 2.14.

For every additional P/IP, y will increase by 4.55.

For every additional W#, y will increase by 0.77.

3. Using the p-value approach, is the null hypothesis for the t test rejected or not rejected for each coefficient? Why or why not?

The null hypothesis is rejected for K/BB because p < 0.05.

The null hypothesis is not rejected for K/9 because p > 0.05.

The null hypothesis is not rejected for P/IP because p > 0.05.

The null hypothesis is not rejected for W# because p > 0.05.

4. Interpret the implications of these findings for the variable.

The significant variable is K/BB.

5. Identify the variable with the greatest significance.

K/BB