Multiple Regression Analysis Was Used to Study the Relationship Between $\beta$

question 43

Essay

Multiple regression analysis was used to study the relationship between a dependent variable, Y, and three independent variables X₁, X₂ and, X₃. The following is a partial result of the regression analysis involving 20 observations.
a.Compute the coefficient of determination.
b.Perform a t test and determine whether or not $\beta$ ₁ is significantly different from zero ( $\alpha$ = 0.05).
c.Perform a t test and determine whether or not $\beta$ ₂ is significantly different from zero ( $\alpha$ = 0.05).
d.Perform a t test and determine whether or not $\beta$ ₃ is significantly different from zero ( $\alpha$ = 0.05).
e.At $\alpha$ = 0.05, perform an F test and determine whether or not the regression model is significant.

---

Definitions:

Stockholders' Equity

Represents the ownership interest of investors in a corporation, calculated as total assets minus total liabilities.

Normal Debit

An account entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts, reflecting in the left column of a double-entry accounting system.

Normal Credit

In accounting, it refers to the balance side (either credit or debit) that is expected for a particular type of account; for liability accounts, equity accounts, and revenue accounts, it is typically a credit balance.

Asset

Resources owned or controlled by a company expected to provide future economic benefits.