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Posted: May 15th, 2023
The production of car tires in any given year is related to the number of
PART II REGRESSION ANALYSISAnswer questions (a) through (e) using the following information and output for multiple regression.The production of car tires in any given year is related to the number of cars produced that year and in prior years. Suppose our econometric model resulted in the following data.Regression Coefficientt-Statisticp-ValueX1 = Cars Produced This Year5.0010.40.0000X2 = Cars Produced Last Year0.250.60.5499X3 = Cars Produced 2 Years Ago0.671.40.1646X4 = Cars Produced 3 Years Ago2.122.70.0081X5 = Cars Produced 4 Years Ago3.446.50.0000Constant-50,000Multiple R0.83R Squared?Why is the coefficient for âcars produced this yearâ a positive number?Which is the most statistically significant variable? What evidence shows this?Which is the least statistically significant variable? What evidence shows this?For a 0.05 level of significance, should any variable be dropped from this model? Why or why not?What is the R Squared Value? What is the interpretation?
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