Question

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.727076179
R Square	0.528639771
Adjusted R Square	0.525504337
Standard Error	3.573206748
Observations	455
ANOVA
	df	SS	MS	F	Significance F
Regression	3	6458.025113	2152.67504	168.601791	2.7119E-73
Residual	451	5758.280717	12.7678065
Total	454	12216.30583
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 99.0%	Upper 99.0%
Intercept	-0.250148858	0.359211364	-0.6963835	0.48654745	-0.9560846	0.45578693	-1.1793476	0.67904987
RBUK	0.025079378	0.023812698	1.05319345	0.29281626	-0.0217182	0.07187699	-0.0365187	0.08667745
RSUS	0.713727515	0.042328316	16.8617037	8.0578E-50	0.6305423	0.79691273	0.60423372	0.82322131
RSJA	0.222104292	0.029996288	7.40439254	6.5208E-13	0.16315445	0.28105414	0.14451066	0.29969792

1) Conduct a t-test for statistical significance of the individual slope coefficients at the 1% level of significance. Provide the interpretation of the significant slope estimates. (State hypotheses, and Use both methods of testing, the P-Value method and the Critical method with all the details. No short answers.) 2) Conduct a f-test for the overall significance of the regression equation at the 1% level of significance. (Test for the significance of the regression relationship as a whole) (State hypotheses, and Use both methods of testing, the P-Value method and the Critical method with all the details. No short answers.) SHOW GRAPH

Answer 1

1)

For df=451, the critical value for 1% level of significance using excel function "=TINV(0.01,451)" is 2.587.

Rejection region:

If t < -2.587 or t > 2.587, reject H0

For coefficient RBUK:

Hypotheses are:

The test statistics is t = 1.053

Since t does not lie in the rejection region so we fail to reject the null hypothesis.

The p-value is: 0.2928

Since p-value is greater than 0.01 so we fail to reject the null hypothesis.

For coefficient RSUS:

Hypotheses are:

The test statistics is t = 16.862

Since t lies in the rejection region so we reject the null hypothesis.

The p-value is: 0.0000

Since p-value is less than 0.01 so we reject the null hypothesis.

For coefficient RSJA:

Hypotheses are:

The test statistics is t = 7.404

Since t lies in the rejection region so we reject the null hypothesis.

The p-value is: 0.0000

Since p-value is less than 0.01 so we reject the null hypothesis.

2)

Hypotheses are:

The critical value of F using excel function "=FINV(0.01,3,451)" is 3.825.

The F test statistics is

F = 168.602

Since F > 3.825, reject H0.

The p-value is: 0.0000

Since p-value is less than 0.01 so we reject the null hypothesis.