A student used multiple regression analysis to study how family spending (y) is influenced by income (x1), family size (x2), and additions to savings (x3). The variables y, x1, and x3 are measured in thousands of dollars. The following results were obtained. ANOVA dfSSRegression345.9634Residual112.6218Total CoefficientsStandard ErrorIntercept0.0136 x10.79920.074 x20.22800.190 x3-0.57960.920 A) Carry out a test to see if x3 and y are significantly related. Use a 5% level of significance.

given that, X3 = - 0.5796 Standard error = 0.920 Here the null hypothesis is X3 and Y are not…

Answered: Carry out a test to see if x3 and y are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A student used multiple regression analysis to study how family spending (y) is influenced by income (x1), family size (x2), and additions to savings (x3). The variables y, x1, and x3 are measured in thousands of dollars. The following results were obtained.

ANOVA
	df	SS
Regression	3	45.9634
Residual	11	2.6218
Total

	*Coefficients*	*Standard Error*
Intercept	0.0136
x1	0.7992	0.074

x2	0.2280	0.190

x3	-0.5796	0.920

A) Carry out a test to see if x3 and y are significantly related. Use a 5% level of significance.

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