. regress quantity price Source| Number of obs = F( 1, 118)= Prob > F R-squared
ID: 2936896 • Letter: #
Question
. regress quantity price Source| Number of obs = F( 1, 118)= Prob > F R-squared Adj R-squared = Root MSE df MS 120 26.39 = 0.0000 Model 547293.271 2447519.11 1 547293.271 118 20741.6873 Residual Total 2994812.38119 25166.4906 - 144.02 quantityI P>It! [95% Conf. Interval] price -1.795559 . 349552 cons 9184.32 88.45182 103.83 0.000 9009.161 9359.479 (a) What would be the R2 for this regression? (b) What would be the t-statistic for the test if whether the price coefficient is equal to zero? What would it be for a test that the t-statistic is equal to -2.5?Explanation / Answer
a) R2 = 1 - sum of square error / sum of square for total
= 1 - 2447519.11/2994812.19
= 0.183
b) if coeffiecient is '0'
then T statistic = 0 / 0.349552 = 0
when T statistic = -2.5
theni coefficient = -2.5*0.349552 = -0.87388
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