Question

Ava Diego, a doctoral student, is researching car loans issued at a local bank. She prepared a sample of 200 to determine if there is a relationship between the loan amount, length of the loan and interest rate provided. The regression results are in the table below. Which model is more suitable for prediction and what is the best fit reason? Variable Model 1 Model 2 Constant 114.325 110.54 0.000 0.000 Interest Rate 106.505 108.650 (0.000) (0.000) Loan Length 0.2074 0.3290 (0.000) (0.006) Interest x Loan NA -0.1430 (0.0005) Adjusted R2 0.2178 0.2089 Multiple Choice Model 2 is the most suitable because of the p-value variance. Model 1 is the most suitable because of the higher adjusted R2 value. Model 2 is the most suitable because of the lower adjusted R2 value. Neither provide enough results data to predict the model or reasoning.

          Ava Diego, a doctoral student, is researching car loans issued at a local bank. She prepared a sample of 200 to determine if there is a relationship between the loan amount, length of the loan and interest rate provided. The regression results are in the table below. Which model is more suitable for prediction and what is the best fit reason?

Variable Model 1 Model 2
Constant 114.325 110.54
0.000 0.000
Interest Rate 106.505 108.650
(0.000) (0.000)
Loan Length 0.2074 0.3290
(0.000) (0.006)
Interest x Loan NA -0.1430
(0.0005)

Adjusted R2 0.2178 0.2089

Multiple Choice
Model 2 is the most suitable because of the p-value variance.
Model 1 is the most suitable because of the higher adjusted R2 value.
Model 2 is the most suitable because of the lower adjusted R2 value.
Neither provide enough results data to predict the model or reasoning.

Ava Diego, a doctoral student, is researching car loans issued at a local bank. She prepared a sample of 200 to determine if there is a relationship between the loan amount, length of the loan and interest rate provided. The regression results are in the table below. Which model is more suitable for prediction and what is the best fit reason?

Variable Model 1 Model 2
Constant 114.325 110.54
0.000 0.000
Interest Rate 106.505 108.650
(0.000) (0.000)
Loan Length 0.2074 0.3290
(0.000) (0.006)
Interest x Loan NA -0.1430
(0.0005)

Adjusted R2 0.2178 0.2089

Multiple Choice
Model 2 is the most suitable because of the p-value variance.
Model 1 is the most suitable because of the higher adjusted R2 value.
Model 2 is the most suitable because of the lower adjusted R2 value.
Neither provide enough results data to predict the model or reasoning.

Added by Donna N.

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