THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
An economist is in the process of developing a model to predict the price of gold.She believes that the two most important variables are the price of a barrel of oil (x 1 )and the interest rate (x 2 ).She proposes the model y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below.
THE REGRESSION EQUATION IS
y = 115.6 + 22.3x 1 + 14.7x 2 - 1.36x 1 x 2

S = 20.9 R-Sq = 55.4%
ANALYSIS OF VARIANCE

-Do these results allow us,at the 5% significance level,to conclude that the model is useful in predicting the price of gold?

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
An economist is in the process of developing a model to predict the price of gold.She believes that the two most important variables are the price of a barrel of oil (x 1 )and the interest rate (x 2 ).She proposes the model y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below.
THE REGRESSION EQUATION IS
y = 115.6 + 22.3x 1 + 14.7x 2 - 1.36x 1 x 2 
  
S = 20.9 R-Sq = 55.4%
ANALYSIS OF VARIANCE
 
-Do these results allow us,at the 5% significance level,to conclude that the model is useful in predicting the price of gold?

Quizplus · Accepted Answer

The Answer of THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
An economist is in the process of developing a model to predict the price of gold.She believes that the two most important variables are the price of a barrel of oil (x 1 )and the interest rate (x 2 ).She proposes the model y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below.
THE REGRESSION EQUATION IS
y = 115.6 + 22.3x 1 + 14.7x 2 - 1.36x 1 x 2 
  
S = 20.9 R-Sq = 55.4%
ANALYSIS OF VARIANCE
 
-Do these results allow us,at the 5% significance level,to conclude that the model is useful in predicting the price of gold?