Using 20 observations, the multiple regression model y = 0 + 1x1 + 2x2 + was estimated. A portion of the regression results is

Using 20 observations, the multiple regression model y = β0 + β1x1 + β2x2 + ε was estimated. A portion of the regression results is as follows:

df SS MS F Significance F Regression 2 2.12E+12 1.06E+12 56.556 3.07E-08 Residual 17 3.19E+11 1.88E+10 Total 19 2.44E+12 Coefficients Standard Error t Stat p-value Lower 95%

Upper 95%

Intercept –987557 131583 –7.505 0.000 –1265173 –709941 x1 29233 32653 0.895 0.383 –39660 98125 x2 30283 32645 0.928 0.367 –38592 99158

a. At the 5% significance level, are the explanatory variables jointly significant?

b. At the 5% significance level, is each explanatory variable individually significant?

c. What is the likely problem with this model?