Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.Suppose the restriction β₃ = 0 is imposed on the cubic model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε.What regression equation is obtained under this restriction?

Question

Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results.

Refer to Exhibit 16.6.Suppose the restriction β₃ = 0 is imposed on the cubic model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε.What regression equation is obtained under this restriction?

Quizplus · Accepted Answer

The Answer of Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.Suppose the restriction β₃ = 0 is imposed on the cubic model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε.What regression equation is obtained under this restriction?