The following three equations were estimated using the 1,534 observations in 401K: prate = 80.29 + 5.44 mrate + .269 age – .00013 totemp (.78) (.52) R = .100, R = .098. (.045) (.00004) 2.66 log(totemp) (.28) prate = 97.32 + 5.02 mrate + .314 age (1.95) (0.51) R? = .144, R = .142. (.044) prate = 80.62 + 5.34 mrate + .290 age – .00043 totemp (.78) (.52) + .0000000039 totemp (.00000000010) R = .108, R = .106. (.045) (.00009) Which of these three models do you prefer? Why?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter11: Topics From Analytic Geometry
Section11.4: Plane Curves And Parametric Equations
Problem 44E
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The following three equations were estimated using the 1,534 observations in 401K:
prate = 80.29 + 5.44 mrate + .269 age – .00013 totemp
(.78) (.52)
R = .100, R = .098.
(.045)
(.00004)
Transcribed Image Text:The following three equations were estimated using the 1,534 observations in 401K: prate = 80.29 + 5.44 mrate + .269 age – .00013 totemp (.78) (.52) R = .100, R = .098. (.045) (.00004)
2.66 log(totemp)
(.28)
prate =
97.32 + 5.02 mrate + .314 age
(1.95) (0.51)
R? = .144, R = .142.
(.044)
prate = 80.62 + 5.34 mrate + .290 age – .00043 totemp
(.78) (.52)
+ .0000000039 totemp
(.00000000010)
R = .108, R = .106.
(.045)
(.00009)
Which of these three models do you prefer? Why?
Transcribed Image Text:2.66 log(totemp) (.28) prate = 97.32 + 5.02 mrate + .314 age (1.95) (0.51) R? = .144, R = .142. (.044) prate = 80.62 + 5.34 mrate + .290 age – .00043 totemp (.78) (.52) + .0000000039 totemp (.00000000010) R = .108, R = .106. (.045) (.00009) Which of these three models do you prefer? Why?
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