Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x 1 )and the interest rate (x 2 ).She proposes the first-order model with interaction: y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x 1 + 14.7x 2 − 1.36x 1 x 2 S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE
-{Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?

Question

Silver Prices
 An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x 1 )and the interest rate (x 2 ).She proposes the first-order model with interaction: y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x 1 + 14.7x 2 − 1.36x 1 x 2  S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE  ​ ​
-{Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?

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The Answer of Silver Prices
 An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x 1 )and the interest rate (x 2 ).She proposes the first-order model with interaction: y = β 0 + β 1 x 1 + β 2 x 2 + β 3 x 1 x 3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x 1 + 14.7x 2 − 1.36x 1 x 2  S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE  ​ ​
-{Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?

Silver Prices an Economist Is in the Process of Developing a Developing