ECON7300: Statistical Project Assignment (Part II), Semester 2, 2022 Instructions for Dataset3 part II: Simple Regression Analysis This data file contains a variety of accounting and financial values (R&D expenses and asset values) that describe a sample of 236 companies operating in several technology industries in Australia in 2016. The variables in the dataset are: . expense (Y, R&D expenses in millions of Australian dollars) . asset (X, total company asset in millions of Australian dollars) The dependent variable for your analysis is expense. Answer the following questions using Dataset3 part II. (a) Estimate a regression model using X to predict Y (state the simple linear regression equation). (b) Interpret the meaning of the slope. (c) Predict Y when X = 15 (d) Compute the coefficient of determination and interpret its meaning. (e) Compute the standard error of the estimate and interpret its meaning. Judge the magnitude of the standard error of the estimate. (f) Perform a residual analysis (plot the residuals) and evaluate whether the assumptions of regression have been violated. (g) Test for the slope using t test (follow all the necessary steps). Assume 5% level of significance. (h) Test for the slope using F test (follow all the necessary steps). Assume 5% level of significance. (i) Test for the correlation coefficient (follow all the necessary steps). Assume 5% level of significance (j) Compute a 95% confidence interval estimate of the mean Y for all companies operating in several technology industries in Australia when X = 15 and interpret its meaning. (k) Compute a 95% prediction interval of Y for a company operation in technology industry in Australia when X = 15 and interpret its meaning. 2