Question

Q. 9

The following is a partial regression result of a two-variable model (i.e. simple linear regression). In the study, a health care economist seeks to determine if a relationship exists between personal income and expenditures on health care, both measured in billions of dollars.

Regression Statistics
Multiple R	???
R Square	???
Standard Error
Observations	51
ANOVA
	df	SS	MS	F	P-value
Regression	1	15,750.32			0.00001
Residual/Error
Total	???	16,068.21
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	0.1764964	0.467509347	0.377524859	0.70741	-0.76	1.116
Income	0.1416522	0.002875	???	0.00001	???	0.147

The sum of squares total (SST) is a measure of ___ and is equal to:

a. Explained variation of Y; 16,068.2143

b. Total variation of Y; 15,750.3157

c. Unexplained variation; 317.8986

d. Total variation of Y; 16,068.2143

e. None of the above

The estimated variance of the residual (error term) is:

a. 55.1830

b. 2.5471

c. 6.4877

d. none of the above

The correlation coefficient of the above model is:

a. 0.99

b. 0.9802

c. 0.9718

d. none of the above

Answer 1

1)

d. Total variation of Y; 16,068.2143   {see the column SS and row Total}

2)

This is given by MSE

= SSE/(n-2) = (SST - SSR)/(n-2)

= ( 16,068.2143 - 15,750.32 )/49

= 6.48763877551

option C)

3)

r = sqrt(SSR/SST)

= sqrt(15,750.32/ 16,068.2143 )

= 0.99005

A)0.99

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