The accompanying table shows the regression results when estimating y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε. At the 5% significance level,which of the following explanatory variable(s)is(are)individually significant? A) Only x₁ B) Only x₃ C) x₁ and x₂ D) x₂ and x₃

Question

Quizplus · Accepted Answer

To determine the individual significance of each explanatory variable, we look at the p-values in the table. At the 5% significance level, any variable with a p-value less than 0.05 is considered significant. The p-values for x₁, x₂, and x₃ are 0.028, 0.067, and 0.036 respectively. Therefore, only x₁ and x₂ are individually significant.

The Accompanying Table Shows the Regression Results When Estimating Y