B.2. A simple linear regression model for marks (Yi) and the hours of study (Xi) is as follows: Yi = ?0 + ?1 Xi + ei where ?0 and ?1 are unknown parameters, and ei is the disturbance term. The regression results are: Coefficient Standard error t Stat p-value Intercept 50 2.00 A 0.0004 Study hours B 0.50 4 0.005 Regression Statistics R Squared 0.8643 Standard error 9.4531 Observations 25 a. Calculate the values of A and B. (5 marks) b. Explain the meaning of R Squared. (5 marks) c. What conclusions can you reach about the relationships between marks (Yi) and study hours (Xi)? (5 marks) d. What is the predicted mark for a person with 10 hours of study? (5 marks) e. Is the prediction in (d) reliable? Explain your answer. (4 marks)
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Step 1: Calculate the values of A and B Given: Intercept (A) = 25 Study hours (B) = 2 **A = 25, B = 2** Show more…
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