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A First-Order Model Was Used in a Regression Analysis Involving x1x _ { 1 }

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Essay

A first-order model was used in a regression analysis involving 25 observations to study the relationship between a dependent variable y and three independent variables, x1x _ { 1 } , x2x _ { 2 } and X3X _ { 3 } . The analysis showed that the mean squares for regression is 160 and the sum of squares for error is 1050. In addition, the following is a partial computer printout.  Predictor  Coef  StDev  Constant 254x1186x2124.8x365\begin{array} { | c | c c | } \hline \text { Predictor } & \text { Coef } & \text { StDev } \\\hline \text { Constant } & 25 & 4 \\x _ { 1 } & 18 & 6 \\x _ { 2 } & - 12 & 4.8 \\x _ { 3 } & 6 & 5 \\\hline\end{array} Is there sufficient evidence at the 5% significance level to indicate that x2x _ { 2 } is negatively linearly related to y?


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Indirect Method

The indirect method is an accounting practice used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

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