Suppose you are looking at the results of a multiple regression using 3 ‘x’ variables and you see that the RSquared is high (close to 1.0), the F-Statistic is much greater than 10, and t-statistics are as follows: 6.1 for variable x1, -.51 for variable x2, and -4.51 for variable x3. What should you do using this information?… conclude that the regression and all of the x variables used have no value… conclude that the regression and all of the x variables used have useful value… conclude that the regression might be useful but should be rerun dropping out the x3 variable since the -4.51 t-value indicates that the x3 variable is not useful… conclude that the regression might be useful but should be rerun dropping out the x2 variable since the -.51 t-value indicates that the x2 variable is not useful

It is given that the F-Statistic is much greater than 10, and t-statistics are as follows: 6.1 for…

Answered: Suppose you are looking at the results…

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter4: Linear Functions

Section: Chapter Questions

Problem 30PT: For the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or...

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Suppose you are looking at the results of a multiple regression using 3 ‘x’ variables and you see that the RSquared is high (close to 1.0), the F-Statistic is much greater than 10, and t-statistics are as follows: 6.1 for variable x1, -.51 for variable x2, and -4.51 for variable x3. What should you do using this information?
1. … conclude that the regression and all of the x variables used have no value
2. … conclude that the regression and all of the x variables used have useful value
3. … conclude that the regression might be useful but should be rerun dropping out the x3 variable since the -4.51 t-value indicates that the x3 variable is not useful
4. … conclude that the regression might be useful but should be rerun dropping out the x2 variable since the -.51 t-value indicates that the x2 variable is not useful

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