Situation: The U.S. Bureau of Mines produces data on the price of Minerals. The
ID: 3049023 • Letter: S
Question
Situation:
The U.S. Bureau of Mines produces data on the price of Minerals. The data below displays the average prices per year for several minerals over a decade.
Gold
($ per oz.)
161.1
308.0
613.0
460.0
376.0
424.0
361.0
318.0
368.0
448.0
438.0
382.6
Copper
(cents per lb.)
64.2
93.3
101.3
84.2
72.8
76.5
66.8
67.0
66.1
82.5
120.5
130.9
Silver
($ per oz.)
4.4
11.1
20.6
10.5
8.0
11.4
8.1
6.1
5.5
7.0
6.5
5.5
Aluminum
($ per oz.)
4.4
11.1
20.6
10.5
8.0
11.4
8.1
6.1
5.5
7.0
6.5
5.5
Action:
Use the attached MS Excel spreadsheet data and multiple regression to produce a model to predict the average price of gold from other variables. Comment on the following:
a. Regression equation
b. R, R2 and 1-R2, adjusted R2
c. Standard error of estimate
d. Report the t's for each value and the corresponding p-values
e. Overall test of hypothesis and decision
f. Use a .05 level of significance. Cite which variables are significant and which are not significant, based on the t values and p values for each independent variable.
Explanation / Answer
SUMMARY OUTPUT Regression Statistics Multiple R 0.783984 R Square 0.614631 Adjusted R Square 0.417883 Standard Error 73.82698 Observations 12 ANOVA df SS MS F Significance F Regression 3 78236.73 26078.91 7.177125 0.011725 Residual 9 49053.8 5450.422 Total 12 127290.5 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 117.7521 93.58824 1.258193 0.239982 -93.9592 329.4634 -93.9592 329.4634 copper 1.484215 1.022746 1.451206 0.180669 -0.8294 3.797829 -0.8294 3.797829 silver 0 0 65535 #NUM! 0 0 0 0 Aluminum 16.44433 5.145706 3.195739 #NUM! 4.803937 28.08473 4.803937 28.08473