In a multiple regression equation, two independent variables are considered, and

Question

In a multiple regression equation, two independent variables are considered, and the sample size is 26. The regression coefficients and the standard errors are as follows. Conduct a test of hypothesis to determine whether either independent variable has a coefficient equal to zero. Would you consider deleting either variable from the regression equation? Use the 05 significance level. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.) H_0: beta_1 = 0 H_0: beta_2 = 0 H_1: beta_1 notequalto 0 H_1: beta_2 notequalto 0 H_0 is rejected if t 2.069 t for b_1 coefficient = t for b_2 coefficient = variable can be deleted.

Explanation / Answer

test for coeffcient b1::  

                                t=b1/sb1 = 1.468/0.89 = 1.6494382

Since test statistics lie in the rejection region so we reject the null hypothesis. That is b1 is significant to model.

test for coeffcient b2:

                               t=b2/sb2 =-1.084/0.88 = -1.231818182

Since test statistics does lie in the rejection region so we fail to reject the null hypothesis. That is b2 is not significant to model. So you should consider b2 to reject from the model.

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