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Added on  2023-06-03

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Question A
Steps
a) Click Statistics > Linear models and related > Linear regression on the main menu,
b) You will be presented with the Regress – Linear regression dialogue box:
c) Select your Dependent variable: drop-down box, and your the Independent
variables: drop-down box
d) Click the button. This will generate the output.
Question B
A unit change in total expenditure leads to a XX% increase/decrease in WALC
A unit change in number of children leads to a XX unit increase/decrease in WALC
A unit change in age leads to a XX unit increase/decrease in WALC
Question C
For this question, you look at the P value for each of the coefficients, if the p value output is less than
0.05, then the coefficient is significant otherwise, it is not significant
Question D
For this question, you test the t statistic output for NK against the t value from the tables for 5%
significance level for the n-1 degrees of freedom in which N is the number of variables in the assignment
Question E
For this question, you first add another variable AGE squared by submitting the code generate AGE2 =
AGE^2
You then run the regression model again using steps in Question A but this time you also include the
new variable AGE2 as an independent variable
Question F
For this question use the command, matrix list e(V) to generate the variance covariance matrix
Question G

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