4. (10 points) Suppose your friend Alexa (who is a robot) runs a simple linear r

Question

4. (10 points) Suppose your friend Alexa (who is a robot) runs a simple linear regression of y on x and produces a scatter plot also. She gets the following results: . reg y x 50 101.84 0. 0000 0. 6797 Adj R- squar ed 0. 6730 1.9589 Sour ce| df MS Number of obs F1, 48 390. 767042 184. 185492 1 390. 767042 Pr ob > 48 3. 83719774 R- squar ed Mbdel Resi dual Tot al 574. 952533 49 11. 7337252 Root MSE Coef St d. Er r [ 95% Conf. I nt er val ] 2. 055293 -. 2855956 2036676 5528946 10. 09 -0. 52 0. 000 0. 608 1. 645792 - 1. 397265 2. 464795 . 8260735 cons a. Can you identify a mistake she made? b. If yes, how could she correct this mistake? c. What in her regression results would we expect to change?

Explanation / Answer

Here we have given regression result.

From the graph we can see that there is positive relationship between two variables.

And test statistic F= 101.84

But in the given output F(1,48) = 101.84

F(1,84) is known as critical value for F-distribution.

P-value is also correct.

P-value< alpha

Reject H0 at 5% level of significance.

Conclusion : We get significant result about F-test.

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