Question

Exhibit 1-1: A multiple linear regression was used to study how family spending (y) is influenced by income (x1), family size (x2), and additions to savings (x3). The variables y, x1, and x3 are measured in thousands of dollars per year. The following results were obtained. Source of variation DF SS Regression k=3 SSR=25 Residual n-k-l=26 SSE=80 Total n-l= SST= Coefficients Standard error Intercept 7.58 x1 b1=-2.35 0.6379 x2 b2=2.5 0.44 x3 b3=0.35 0.33 A. Refer to Exhibit 1-1. What is the adjusted R-square? B. Refer to Exhibit 1-1. What is the value of the t statistic for testing whether x1 and y are related? C. Refer to Exhibit 1-1. What is the estimated standard deviation of the error term in the regression model (standard error of the estimate)? D. Refer to Exhibit 1-1. What percent of variations in family spending (y) was explained by the estimated regression model?

          Exhibit 1-1: A multiple linear regression was used to study how family spending (y) is influenced by income (x1), family size (x2), and additions to savings (x3). The variables y, x1, and x3 are measured in thousands of dollars per year. The following results were obtained.

Source of variation
DF
SS
Regression
k=3
SSR=25
Residual
n-k-l=26
SSE=80
Total
n-l=
SST=

Coefficients 
Standard error
Intercept
7.58
x1
b1=-2.35
0.6379
x2
b2=2.5
0.44
x3
b3=0.35
0.33

A. Refer to Exhibit 1-1. What is the adjusted R-square?
B. Refer to Exhibit 1-1. What is the value of the t statistic for testing whether x1 and y are related?
C. Refer to Exhibit 1-1. What is the estimated standard deviation of the error term in the regression model (standard error of the estimate)?
D. Refer to Exhibit 1-1. What percent of variations in family spending (y) was explained by the estimated regression model?

Added by Nicholas C.

Question

Please give Ace some feedback