Question: Q8. The model y = 130 + 31x1 + 62x2 + e was tted to a sample of 25 families in order to study the

Q8. The model y = 130 + 31x1 + 62x2 + e was tted to a sample of 25 families in order to study the consumption of breakfast cereal y, in kg per week, as a function of household income, X1 and household adult equivalents, x2. The least squares estimates of the regression parameters were 190 = 0.03, 1:!1 = 0.05, and 132 = 1.1. The coefcient standard errors were sbl = 0.02 and 3:92 = 0.38. The total sum of squares and the error sum of squares were found to be 165.8 and 66.32, respectively. A. Find and interpret the coefcient of determination and the coefficient of multiple correlation. (3 points) B. Without doing any additional calculations, briey describe whether the adjusted coefficient of determination will be smaller or larger than the coefficient of determination calculated in part (a). (2 points) C. Test against the appropriate one-sided alternative, the null hypothesis that, for a fixed family size, cereal consumption does not linearly depend on income. Use a = 0.05. (3 points) D. Using a 5% signicance level, test the null hypothesis Ho: 61 = 62 = 0 against the alternative H1: at least one B} at 0 (j = 1,2). (2 points)
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