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 30. The regression coefficients and the standard errors are as follows. b1 1.5980 Sb 0.85 b21.259 0.60 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 0.05 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) Ho is rejected if t 2.052 (Click to select) variable can be deleted

Explanation / Answer

For 1st variable:

t = b1/sb1 = 1.5980/0.85 = 1.88

So, we fail to reject H0 for the first variable.

Thus, first variable b1 can be deleted.

For 2nd variable:

t = b2/sb2 = - 1.259/0.60 = - 2.098

So, we reject H0 for second variable.

Thus, second variable b2 cannot be deleted.

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