1. You are given with the regression result that shows the regression model with k variables....

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1. You are given with the regression result that shows theregression model with k variables. Answer the following parts:
a) How do you tell that a certain variable is influential?
b) Suppose the theoretical issue said there exist a linearconstraint, how do you figure out the constraint holds?
c) Suppose you have two sets of explanatory variables; how didyou consider which set is the better one?
d) Whatâ€™s the meaning of R-squared? Should we always look forthe model that has the high R-squared?
e) Suppose the explanatory variables are subject to lineardependence among themselves, what is the correct procedure toestimate the coefficients?

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3.9 Ratings (720 Votes)

a We can test for the influence significance of a certainvariable using t test If the p value of the t statistic is lessthan 005 we conclude null hypothesis is rejected H0 bi0 versusHi bi not equal 0 that the certain variable is different fromzero This See Answer

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