The following regression output was obtained from a study of architectural firms
ID: 3359780 • Letter: T
Question
The following regression output was obtained from a study of architectural firms. The dependent variable is the total amount of fees in millions of dollars.
Write out the regression equation. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.)
State the decision rule for .05 significance level: H0: 1 = 2 = 3 =4 =5 =0; H1: Not all 's are 0. (Round your answer to 2 decimal places.)
Can we conclude that the set of regression coefficients could be different from 0? Use the .05 significance level.
State the decision rule for .05 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
Compute the value of the test statistic. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)
The following regression output was obtained from a study of architectural firms. The dependent variable is the total amount of fees in millions of dollars.
Explanation / Answer
a) = 11.487+ 0.472X1 +( -0.472) X2 +0.287 X3 + 0.874 X4 + (-0.415) X5.
b|)sample size n=49+1 =50
Independent variables k =5
c-1)for 0.05 level ; crtiical value for 5 df of numerator and 44 degree of denominator ; critical value F =2.427
reject Ho if F>2.43
c-2) Computed value of F is =16.39
c-3) Reject Not All of the regression coefficients are zero.
d-1) for 0.05 level and 44 degree of freedom ; critical value t =2.015
Reject H0 if t < -2.015 or t>2.015
d-2)from above
e)
as test statistic is lower for X1 and X5 are less then critical value
therefore X1 and X5 to be considered eliminating
t value X1 1.27 X2 -2.62 X3 -2.59 X4 3.24 X5 -1.97