Test whether there is an autocorrelation among errors or not, given that Durbin-

Question

Test whether there is an autocorrelation among errors or not, given that Durbin-Watson Statistic d = 1.89, n = 30, k = 3, and a= 0.05. when d.-1.21 and du-1.65 (you must show all the steps) 1. A study has recently been conducted by a major computer magazine publisher in which the objective was to develop a multiple regression model to explain the variation in price of personal computers. Three independent variables were used. The following computer printout shows the final output. However, several values are omitted from the printout. 2. SUMMARY OUTPUT ression Statistics 0.834308875 Multiple R R Square Adjusted R Square Standard Error Observations ANOVA nificance F 2.07E-0 df MS Regressiorn Residual Total 3 34335282.67 4991966.89 35 49327249.56 Intercept Processor Mz RAM Hard Drive Capacit Coefficients Standard Error t Stat P-value Lower 95%Upper 95% 45.95413592 730.8679496 -0.06288 0.950256 -1534.68 1442.774 0.193481924 2.557161186 4.521583654 2.94317936 174.042249 44.08895333 a) Given this information, calculate the coefficient of determination? Interpret? b) Given this information, test for the impact of Processor Mz on the price of personal computer at 5% significance level (you must show all the steps)

Explanation / Answer

1. Here dL = 1.21 and dU = 1.65

so here the value of Durbin- Watson Statistic d = 1.89

Here first we will check d > 2 or d < 2

if d < 2 then there is a chance of positive correlation.

Here d > dU

so we can say that we would not reject the null hypothesis and can say there is no statistical evidence that the error terms are positively autocorrelated.

Question 2

(a) Coefficient of determination R2 = 34335282.67/49327249.56 = 0.6961

(b) Here t stat for the impact of processor Mz on the price of personal computer

t = 0.1935/ 2.5572 = 0.0757

P - value = TDIST (0.0757, 32) = 0.94

so here there is no significantly statistically impact of processor Mz on the price of personal computer

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.