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Suppose you fit the quadratic model E(y)=0+1x+2x2to a set of n = 20 data points and found R2=0.91, SSyy=29.94, and SSE = 2.63.

a. Is there sufficient evidence to indicate that the model contributes information for predicting y? Test using a = .05.

b. What null and alternative hypotheses would you test to determine whether upward curvature exists?

c. What null and alternative hypotheses would you test to determine whether downward curvature exists?

Short Answer

Expert verified
  1. At 95% significance level, it can be concluded that120
  2. H0:2=0whileHa:2>0
  3. H0:2=0whileHa:2<0

Step by step solution

01

Goodness of fit

H0:1=2=0

Ha:At least one of the parameters1or2is non zero

Here, F test statistic=SSEn-K+1=2.6317=0.1547

H0is rejected if F 鈥 statistics < F0.05,20,20. For =0.05, since F 鈥 statistic <F0.05,20,20

Sufficient evidence to reject H0at 95% confidence interval.

Therefore, 120.

02

Significance of β2

To check the curvature of the hyperbola, the null hypothesis is whether the model parameter2is explaining the model where the beta value is zero and the alternate hypothesis is whether the beta value is greater than zero to check whether the hyperbola slopes upwards.

Mathematically,

H0:2=0Ha:2>0

03

consequence of β2

To check the curvature of the hyperbola, the null hypothesis is whether the model parameter2is explaining the model where the beta value is zero and the alternate hypothesis is whether the beta value is less than zero to check if the hyperbola slopes downwards.

Mathematically,

H0:2=0Ha:2<0

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