Question

6) Write the regression (prediction) equation:

Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3* Ind_Var_3

7) Identify and interpret the adjusted R2 (one paragraph):

• Define “adjusted R2.”
• What does the value of the adjusted R2 reveal about the model?
• If the adjusted R2 is low, how has the choice of independent variables created this result?

8) Identify and interpret the F test (one paragraph):

• Using the p-value approach, is the null hypothesis for the F test rejected or not rejected? Why or why not?
• Interpret the implications of these findings for the model.

9) Identify and interpret the t tests for each of the coefficients (one separate paragraph for each variable, in numerical order):

• Are the signs of the coefficients as expected? If not, why not?
• For each of the coefficients, interpret the numerical value.
• Using the p-value approach, is the null hypothesis for the t test rejected or not rejected for each coefficient? Why or why not?
• Interpret the implications of these findings for the variable.
• Identify the variable with the greatest significance.

10) Analyze multicollinearity of the independent variables (one paragraph):

• Generate the correlation matrix.
• Define multicollinearity.
• Are any of the independent variables highly correlated with each other? If so, identify the variables and explain why they are correlated.
• State the implications of multicollinearity (if found) for the model.

11) Other (not required):

• If any additional techniques for improving results are employed, discuss these at the end of the paper.

Table 1: Correlation
	OPS	RBI	AVG	HR
OPS	1
RBI	0.38983	1
AVG	0.505108	0.505046	1
HR	0.449133	0.605869	0.588207	1
Table 2: Analysis of Variance
Anova: Single Factor
SUMMARY
Groups	Count	Sum	Average	Variance
OPS	30	24.438	0.8146	0.024539
RBI	30	2347	78.23333	942.4609
AVG	30	8.232	0.2744	0.000677
HR	30	801	26.7	115.6655
ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Between Groups	120717	3	40239	152.1105	4.83E-40	2.682809
Within Groups	30686.4	116	264.5379
Total	151403.4	119

Answer 1

Solution: