The accompanying table shows the regression results when estimating y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε. At the 5% significance level,which of the following explanatory variable(s)is(are)individually significant? A) Only x₁ B) Only x₃ C) x₁ and x₂ D) x₂ and x₃

Question

Quizplus · Accepted Answer

To determine individual significance, we need to look at the p-values of the coefficients of the explanatory variables. The p-value for x₁ is 0.048, and the p-value for x₂ is 0.041, both below the significance level of 0.05. However, the p-value for x₃ is 0.098, which is above the significance level. Therefore, only x₁ and x₂ are individually significant.

The Accompanying Table Shows the Regression Results When Estimating Y