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2. Using the OLS technique, show that for the following data the line best appro

ID: 3129987 • Letter: 2

Question

2.   Using the OLS technique, show that for the following data the line best approximating the linear relationship between the points is in fact equal to . Also Calculate the R2 and the F-statistic, further show whether the F-Stat is Significant at the .05 level of significance.

Obs   X   Y   XY   X2

1   10   7      

2   20   5      

3   30   4      

4   40   2      

5   50   1      

Totals   150   19      

2.   Using the OLS technique, show that for the following data the line best approximating the linear relationship between the points is in fact equal to . Also Calculate the R2 and the F-statistic, further show whether the F-Stat is Significant at the .05 level of significance.

Obs   X   Y   XY   X2

1   10   7      

2   20   5      

3   30   4      

4   40   2      

5   50   1      

Totals   150   19      

Using the OLS technique, show that for the following data the line best approximating the linear relationship between the points is in fact equal to. Also Calculate the R2 and the F-statistic, further show whether the F-Stat is Significant at the .05 level of significance.

Obs

X

Y

XY

X2

1

10

7

2

20

5

3

30

4

4

40

2

5

50

1

Totals

150

19

2.   Using the OLS technique, show that for the following data the line best approximating the linear relationship between the points is in fact equal to . Also Calculate the R2 and the F-statistic, further show whether the F-Stat is Significant at the .05 level of significance.

Obs   X   Y   XY   X2

1   10   7      

2   20   5      

3   30   4      

4   40   2      

5   50   1      

Totals   150   19      

Using the OLS technique, show that for the following data the line best approximating the linear relationship between the points is in fact equal to. Also Calculate the R2 and the F-statistic, further show whether the F-Stat is Significant at the .05 level of significance.

Obs

X

Y

XY

X2

1

10

7

2

20

5

3

30

4

4

40

2

5

50

1

Totals

150

19

Obs

X

Y

XY

X2

1

10

7

2

20

5

3

30

4

4

40

2

5

50

1

Totals

150

19

Explanation / Answer

sol)

The Regression equation is

y=a+bx

from Excel

The Regression equation is

y=8.3 - 0.15 (x)

Coefficient of detremination R2 =0.99

F Test

From Excel

F cal=225 and P value=0.000643

conclusion: P<alpha , we reject the Null hypothesis. Hence results are significant

SUMMARY OUTPUT Regression Statistics Multiple R 0.993399 R Square 0.986842 Adjusted R Square 0.982456 Standard Error 0.316228 Observations 5 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 8.3 0.331662 25.02544 0.00014 7.244502 9.355498 X -0.15 0.01 -15 0.000643 -0.18182 -0.11818
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