What does the value of the adjusted r2 reveal


Presentation and Interpretation of Results

1) Write the regression (prediction) equation:

Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3 * Ind_Var_3

2) Identify and interpret the adjusted R2 (one paragraph):

< Define "adjusted R2."

< What does the value of the adjusted R2 reveal about the model?

< If the adjusted R2 is low, how has the choice of independent variables created this result?

3) Identify and interpret the F test (one paragraph):

< Using the p-value approach, is the null hypothesis for the F test rejected or not rejected? Why or why not?

< Interpret the implications of these findings for the model.

4) Identify and interpret the t tests for each of the coefficients (one separate paragraph for each variable, in numerical order):

< Are the signs of the coefficients as expected? If not, why not?

< For each of the coefficients, interpret the numerical value.

< Using the p-value approach, is the null hypothesis for the t test rejected or not rejected for each coefficient? Why or why not?

< Interpret the implications of these findings for the variable.

< Identify the variable with the greatest significance.

5) Analyze multicollinearity of the independent variables (one paragraph):

< Generate the correlation matrix.

 

< Define multicollinearity.

 

< Are any of the independent variables highly correlated with each other? If so, identify the variables and explain why they are correlated.

 

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