Analytical Method for Regression Analysis

Running Head: ANALYTICAL METHOD
Analytical Method
Name of the Student
Name of the University
Author note
Course ID

1ANALYTICAL METHOD
Table of Contents
Answer v..........................................................................................................................................2
Answer vi.........................................................................................................................................3
Answer vii........................................................................................................................................3
Answer viii.......................................................................................................................................6
Answer ix.........................................................................................................................................7
References list..................................................................................................................................9

2ANALYTICAL METHOD
Answer v
The regression model to be estimated is given as
log ( sale price )=β0 + β1 log ( length ) + β2 log ( weight )+ u
The obtained regression result is given below
Regression Statistics
Multiple R 0.73
R Square 0.53
Adjusted R Square 0.52
Standard Error 0.31
Observations 251
ANOVA
df SS MS F Significance F
Regression 2 26.51383593 13.25692 138.071 5.0158E-41
Residual
24
8 23.81177806 0.096015
Total
25
0 50.32561399
Coefficients
Standard
Error t Stat P-value Lower 95% Upper 95%
Intercept 1.1679 1.8535 0.6301 0.5292 -2.4827 4.8185
log(length) -0.6118 0.3793 -1.6128 0.1080 -1.3590 0.1353
log (weight) 1.7832 0.1313 13.5817 0.0000 1.5246 2.0418
The regression equation as estimated from the regression result is
log ( sale price ) =1.1679−0.6118 log ( length ) +1.7832 log ( weight )
The estimated elasticity of sales price with respect to weight is 1.7832. In order to test the
statistical significance of the variable weight, t test needs to be conducted. The computed t value
is