Question: Problem 1. The following is the estimation results for a multiple linear regression model: SUMMARY OUTPUT Regression Statistics R-Square 0.677 Standard Error of Regression (

Problem 1. The following is the estimation results for a multiple linear regression model:

SUMMARY OUTPUT

Regression Statistics

R-Square 0.677

Standard Error of Regression (S) 803.190

Observations 47

Coeff. Std. Error t-Stat

Intercept 1123.058 317.573 3.536

X1 25.121 6.072

X2 0.893 0.322

Questions:

  1. Use the fitted model to make a prediction for Y when X1 = 0.27 and X2 = 1.39 (Three decimals; 5 points).
  2. Calculate the t-stat for the slope 1 (Three decimals; 5 points).
  3. Calculate the 95% confidence interval for the slope 2 (Three decimals; 10 points).
  4. Are these two slopes statistically significant at 5% significance level (10 points)?

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