QUESTION 2:

The estimated regression equation for a model involving two independent variables and 55 observations is:

qhat = 55.17+1.1X1 -0.153X2

Other statistics produced for analysis include: SSR = 12370.8, SST = 35963.0, Sb1 = 0.33, Sb2 = 0.20.

a. Interpret b1 and b2 in this estimated regression equation

b. Predict y when X1 = 55 and X2 = 70.

c. Compute R-square and Adjusted R-Square.

d. Comment on the goodness of fit of the model.

e. Compute MSR and MSE.

f.Compute F and use it to test whether the overall model is significant using a p-value ( = 0.05).

g. Perform a t test using the critical value approach for the significance of 1.

Use a level of significance of 0.05.

h. Perform a t test using the critical value approach for the significance of 2.

Use a level of significance of 0.05.