1.What is the Sample Regression Equation ? (Answer this question based on YOUR Excel Summary Output).
- Which of the Independent variables are significant? Why? Explain. Use α = 0.05 in ALL questions. Use only the p-value to explain your answers (No need to go to t tables).
- Test the overall significance of the model by conducting an F test (P-value or significance of F). What does the significance of F (or lack there off) imply?
- Comment on the Goodness of the Fit (Hint, you look, not at r square like in simple regression, rather, you look at the adjusted r-square).
- Comment on the Normality assumption for the residuals for this model. In other word, has the normality assumption been satisfied? Explain your answer (Hint: you need to run Excel’s Histogram feature for Column of the Residuals. I need to see your Histogram in your Excel file and in here).
- Has the assumption of Constant variance (Homoscedasticity) been met?
Explain.
- Has the assumption of the Independence of Variables been met? In other words, do we, or do we not have the problem of multicollinearity? Explain.
- Do you see any Indication of Autocorrelation? Using Excel Formula commands, calculate the value of the Durbin-Watson test statistics in Excel, using the formula from your Formula Sheet or look below:
Durbin-Watson Test Statistics (Also: Use the chart for Durbin Watson test provided in the Formula Sheet, or below). For Durbin-Watson TABLE, you can use your textbook or the Internet.
