Question: Refer to Exercise 12.46. Another multiple regression model used only deposit volume and number of accounts as independent variables, with results as shown here. a.
a. Does omitting the transactions and employees variables seriously reduce R2?
b. Use the R2 values to test the null hypothesis that the coefficients of transactions and employees are zero. What is your conclusion?
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Respcnse: Loan volume mi11ions) Sumary or Fit REquare PSquare t4 Root Hean Square ETor Mean of Response Cbservations(or sum ugts) Parameter Estinates 0.892138 0.886744 0.857923 4.383395 43 Tezm Intercept Deposit volume (millions 0.3227636 0.187509 Mmber of accounts Estimate sta Error t Ratio Prob th -0.324812 0.290321 1.12 0.2699 1.72 0.0929 0.002634 0.001166 2.30 0.0266 elattons Vartable Loan volure nillions Loan volune aionsl tepesit volune tiltcas) Nmber of acccunts transactions amployees 0.6610 0-7377 0.7487 0.8463 1.0000 1.0000 0.9369 0.9403 0.8766 0.6810 0.9369 1.0000 0.9755 0.9144 0.7317 0.9403 0.9755 1.0000 0.9299 . 74 67 0.8766 0.9144 0.3299 10000 0.3463 Munber of account Transaction Eiployees 14 Loan volune 15 Depoait volume 2500 Number of 1500 500 1000 Transactions 600 il 200 12 anployees 10 2 6 10 14 10 15 500 1500 2500 200 600 1000 4 6 9 10 12
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a No the R 2 value has only been reduced from 8945 to 8921 b In the complete model we want to test ... View full answer
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