Test Your Knowledge

The following incomplete ANOVA table is obtained by regressing Y on X1, X2 and X3 for 100 cases. Your job is
to complete the table by providing correct values in the shaded areas, and then complete the following Model
Summary table.
ANOVA Table
Sum of Squares df Mean Square F
Regression 53.7 3 17.9 31.7634
Residual 54.1 96 0.5635
Total 107.8 99

Model Summary Table

Multiple Correlation R Square Adjusted R Square SE of the estimate
0.7058 0.4981 0.4825 0.7507

Also, the following incomplete coefficient table is observed. Complete the shaded area of the table by providing
values.
Coefficient Table
Unstandardized Coefficients
B Std. Error t
(Constant) 0.891 0.637 1.399
X1 0.270 0.065 4.162
X2 0.353 0.055 6.382
X3 0.372 0.074 5.027

Based upon the above table’s result and t 0.025 for 96 df is 1.984, compute the 95% confidence interval (CI) for the
parameters β1, β2 and β3 and write below
95% CI for β1→ (0.141, 0.399)

95% CI for β2→ (0.244, 0.462)

95% CI for β3→ (0.225, 0.519)

Based on the above confidence intervals test each of the following hypotheses each at 5% level of significance.
Hypothesis Decision with reason
H0: β1 = 0 against H1: β1 ≠ 0 Estimated value of β1 is significant at 5%, since the 95% CI of β1 does not include 0.

H0: β2 = 0 against H1: β2 ≠ 0 Estimated value of β2 is significant at 5%, since the 95% CI of β2 does not include 0.

H0: β3 = 0 against H1: β3 ≠ 0 Estimated value of β3 is significant at 5%, since the 95% CI of β3 does not include 0.