A multiple regression model, K = a + bX + cY + dZ, is estimated regression software, which produces the following output:   a. Are the estimates of a, b, c, and d statistically significant at the 1 percent significance level? b. How much of the total variation is explained by this regression equation? c. Is the overall regression equation statistically significant at the 1 percent level of significance? d. If X equals 50, Y equals 200, and Z equals 45, what value do you predict K will take?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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  1. A multiple regression model, K = a + bX + cY + dZ, is estimated regression software, which produces the following output:

 

a. Are the estimates of a, b, c, and d statistically significant at the 1 percent significance level?

b. How much of the total variation is explained by this regression equation?

c. Is the overall regression equation statistically significant at the 1 percent level of significance?

d. If X equals 50, Y equals 200, and Z equals 45, what value do you predict K will take? 

DEPENDENT VARIABLE: K
23
OBSERVATIONS:
VARIABLE
INTERCEPT
X
<> N
Y
R-SQUARE
0.5448
PARAMETER
ESTIMATE
-220.0
-11.340
0.3875
4.26
F-RATIO
7.58
STANDARD
ERROR
68.25
3.670
0.0625
2.350
P-VALUE ON F
0.00157
T-RATIO
-3.22
-3.09
6.20
1.81
P-VALUE
0.0045
0.0060
0.0001
0.0857
Transcribed Image Text:DEPENDENT VARIABLE: K 23 OBSERVATIONS: VARIABLE INTERCEPT X <> N Y R-SQUARE 0.5448 PARAMETER ESTIMATE -220.0 -11.340 0.3875 4.26 F-RATIO 7.58 STANDARD ERROR 68.25 3.670 0.0625 2.350 P-VALUE ON F 0.00157 T-RATIO -3.22 -3.09 6.20 1.81 P-VALUE 0.0045 0.0060 0.0001 0.0857
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