Thefollowingregressionequationforquantitysuppliedwasestimatedusinga
sampleoffifty observations.
Standard errors are in the brackets. The total sum of squares was 132 and theresidual
ii.Testthehypothesisthatslopecoefficient(ß1)=0fallswithinthisinterval. Can
i.Establisha99%confidenceintervalforslopeandinterceptcoefficient.
we say the price has no effect on the quantity supplied? Usethe test of significant
sumofsquares was 19.5
variationsinthequantitysupplied?
iii.CalculateandinterpretR-square.Whatotherfactorscouldpossiblyexplain
Q = 2.2 + 0.104P.
(3.4) (0.005)
approach at 1% significance level to test the abovehypothesis?
iv.From(c) canwe say themodel best fit in the data set?