# Question: Based on data from 63 counties the following model was

Based on data from 63 counties, the following model was estimated by least squares:

where

y` = growth rate in real gross domestic product

x1 = real income per capita

x2 = average tax rate, as a proportion of gross national product

The numbers in parentheses under the coefficients are the estimated coefficient standard errors.

a. Test against a two-sided alternative the null hypothesis that β1 is 0. Interpret your result.

b. Test against a two-sided alternative the null hypothesis that β2 is 0. Interpret your result.

c. Interpret the coefficient of determination.

d. Find and interpret the coefficient of multiple correlation.

where

y` = growth rate in real gross domestic product

x1 = real income per capita

x2 = average tax rate, as a proportion of gross national product

The numbers in parentheses under the coefficients are the estimated coefficient standard errors.

a. Test against a two-sided alternative the null hypothesis that β1 is 0. Interpret your result.

b. Test against a two-sided alternative the null hypothesis that β2 is 0. Interpret your result.

c. Interpret the coefficient of determination.

d. Find and interpret the coefficient of multiple correlation.

## Relevant Questions

The following regression model was fitted to data on 60 U.S. female amateur golfers: where y` = winnings per tournament in dollars x1 = average length of drive in yards x2 = percentage times drive ends in fairway x3 = ...A market researcher is interested in the average amount of money spent per year by college students on clothing. From 25 years of annual data, the following estimated regression was obtained through least squares: where y = ...Write the model specification and define the variables for a multiple regression model to predict wages in U.S. dollars as a function of years of experience and country of employment, indicated as Germany, Great Britain, ...Consider a regression model that uses 48 observations. Let ei denote the residuals from the fitted regression and y`i be the in-sample predicted values of the dependent variable. The least squares regression of e2i on y`i ...The data file Money UK contains observations from the United Kingdom on the quantity of money in millions of pounds (Y); income, in millions of pounds 1X12; and the local authority interest rate (X2). Estimate the model ...Post your question