Purchase Solution

Not what you're looking for?

7.9 A three-variable regression gave the following results {see attachment}.
(a) What is the sample size?
(b) What is the value of the RSS?
(c) What are the d.f of the ESS and RSS?
...

*Please see attachment for complete list of questions (including 7.12 and 7.15)

##### Solution Summary

Consumption Expenditures are overviewed.

##### Solution Preview

7.9.
because of different definitions of "variable" in different text books, sometime the constant is treated as variable, and sometimes not. In this case we use the general form that constant is also a "variable" in the "three variable regression"

(a) from the ANOVA table, we know that sample size = df(TSS) + 1 =15
(b) RSS = TSS - ESS = 66042 - 65965= 77
(c) df (ESS) = # of variables -1 = k-1 = 2
df (RSS) = df(TSS) - df (ESS) = 14-2 = 12
(d) R squared = ESS /TSS = 66042 / 65965= 0.9988
R2 adjusted = 1- (1-R2)(n-1)/(n-k) = 1- (1-0.9988)*(15-1)/(15-3) = 0.9986

(e) to test the coefficients of X2 and X3 are simultaneously zero, we should use a F test.
Because F test employs the statistic (F) to test the hypotheses about the mean of the distributions from which a sample or a set of samples have been drawn. In this case,
Ho: X2 = X3 = 0
Ha: at least one variable is not zero.
Since we set two restrictions on the variables, we cannot use the student t test. But F test can be applied in the following form:
F = MSS(E) / MSS(R) = (ESS / df(E)) / (RSS / df(R)) = (65965 / 2) / (77 / 12) = 32982.5 / 6.42 = 5140.13
Since the 95% critical F(2,12) value is 4, less than the calculated F statistic, ...

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.