Question

3. The estimated regression equation for a model involving two independent variables and 65 observations is:
   
   yhat = 55.17+1.1X₁ -0.153X₂
   
   Other statistics produced for analysis include: SSR = 12370.8, SST = 35963.0, S_b1 = 0.33, S_b2 = 0.20. (16 points)
   1. Interpret b₁ and b₂ in this estimated regression equation
   2. Predict y when X₁ = 65 and X₂ = 70.
   3. Compute R-square and Adjusted R-Square.
   4. Comment on the goodness of fit of the model.
   5. Compute MSR and MSE.
   6. Compute F and use it to test whether the overall model is significant using a p-value (α = 0.05).
   7. Perform a t test using the critical value approach for the significance of β₁. Use a level of significance of 0.05.
   8. Perform a t test using the critical value approach for the significance of β₂. Use a level of significance of 0.05.

Answer 1