The Following Regression Output Is the Result of a Multiple

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The Answer is The variable Monitor included is a qualitative variable since the actual value for this variable is either yes or no depending on whether the listed price includes a monitor or not.In order to include this variable,only one dummy is needed and it has been coded 1 = yes and 0 = no.Given this,the regression result shows that the coefficient for the dummy variable,Monitor,is 19.004.To test this we establish the following null and alternative hypotheses and test statistic:
H₀ : B₁= 0.0
H_a : B₁ ≠ 0.0
The test statistic is:
t =

The variable Monitor included is a qualitative variable since the actual value for this variable is either yes or no depending on whether the listed price includes a monitor or not.In order to include this variable,only one dummy is needed and it has been coded 1 = yes and 0 = no.Given this,the regression result shows that the coefficient for the dummy variable,Monitor,is 19.004.To test this we establish the following null and alternative hypotheses and test statistic: <sub> </sub>H<sub>0</sub> : B<sub>1</sub><sub> </sub>= 0.0 <sub> </sub>H<sub>a</sub> : B<sub>1</sub> ≠ 0.0 The test statistic is: t = = = .0799 We compare this value to the table t value for 0.05 level of statistical significance and n-k-1 = 31 degrees of freedom.The critical value from the table is 2.0395.Since 0.0799 < 2.0395,we do not reject the null hypothesis.Thus,in the presence of the other variables,knowing whether the computer has a monitor included or not is of no statistical significance in explaining the variation in the dependent variable.

=

= .0799
We compare this value to the table t value for 0.05 level of statistical significance and n-k-1 = 31 degrees of freedom.The critical value from the table is 2.0395.Since 0.0799 < 2.0395,we do not reject the null hypothesis.Thus,in the presence of the other variables,knowing whether the computer has a monitor included or not is of no statistical significance in explaining the variation in the dependent variable.

The Following Regression Output Is the Result of a Multiple

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