Essay Available:

You are here: Home → Coursework → Mathematics & Economics

Pages:

1 page/≈275 words

Sources:

No Sources

Level:

Other

Subject:

Mathematics & Economics

Type:

Coursework

Language:

English (U.S.)

Document:

MS Word

Date:

Total cost:

$ 5.18

Topic:

# Regression Analysis: Credit Balance Versus Income, Size, Years (Coursework Sample)

Instructions:

regression analysis

source..Content:

Regression and Correlation Analysis
Regression Analysis: Credit balance versus Income, Size, Years
Analysis of Variance
Source DF Adj SS Adj MS F-Value P-Value
Regression 3 36973471 12324490 61.17 0.000
Income 1 9381778 9381778 46.57 0.000
Size 1 16682665 16682665 82.80 0.000
Years 1 216131 216131 1.07 0.305
Error 51 10275009 201471
Total 54 47248480
Model Summary
S R-sq R-sq(adj) R-sq(pred)
448.855 78.25% 76.97% 74.60%
Coefficients
Term Coef SE Coef T-Value P-Value VIF
Constant 1394 270 5.16 0.000
Income 29.53 4.33 6.82 0.000 1.14
Size 315.6 34.7 9.10 0.000 1.11
Years 13.0 12.6 1.04 0.305 1.07
Regression Equation
Credit balance = 1394 + 29.53 Income + 315.6 Size + 13.0 Years
Above are the regression analysis results
1 Perform the Global Test for Utility (F-Test). Explain your conclusion.
The global test is usually used to test all β’s within a model. This is usually performed through F-test. In this f-test, the hypothesis to be tested will be;
H0: β1=β2=β3= 0
Ha: at least one βj ≠ 0
Decision: reject H0 if p-value<0.05
From the regression analysis results, the F-statistic=61.17 with p-value=0.000. Therefore, we will reject the null hypothesis and conclude that at least one βj ≠ 0 at 0.05 level of significance
2 Perform the t-test on each independent variable. Explain your conclusions and clearly state how you should proceed. In particular, which independent variables should we keep and which should be discarded.
In order to perform this analysis, we will find the critical t-value and compare it with the computed t-statistic.
Hypothesis test for β1;
H0: β1= 0
Ha: β1≠ 0
Critical value, tα2,n-k=t0.025,52=2.009
Decision: reject H0 if
tβ1>tα2,n-k
Test statistic
From the above table,
tβ1=6.82
Since tβ1>tα2,n-k
We will reject the null hypothesis and conclude that β1≠ 0 at 5% level of si...

Get the Whole Paper!

Not exactly what you need?

Do you need a custom essay? Order right now:

### Other Topics:

- Coursework: Questions and Answers to Economics CourseDescription: Suppose the government imposes a price floor of $25, and agrees to purchase any and all units consumers do not buy at the floor price of $25 per unit...2 pages/≈550 words| No Sources | Other | Mathematics & Economics | Coursework |
- Math Assignment Description: What are the 3 methods for solving systems of equations? Which one do you prefer and why?...9 pages/≈2475 words| Other | Mathematics & Economics | Coursework |
- Calculating Tax cost Mathematics & Economics CourseworkDescription: the tax paid increases as the taxable income increases meaning that the higher the taxable income the higher the tax someone is going to pay. For example in the third scenario where the taxable income is only 50,000 the tax being...1 page/≈275 words| No Sources | Other | Mathematics & Economics | Coursework |