The f-wald test, Advanced Statistics

Assignment Help:

Primary Model

Below is a regression analysis without 17 outliers that have been removed

Regression Analysis: wfood versus totexp, income, age, nk

The regression equation is

wfood = 0.378 - 0.00129 totexp - 0.000054 income + 0.00170 age + 0.0317 nk

Predictor              Coef       SE Coef           T          P         VIF

Constant         0.37816     0.01356         27.89  0.000

totexp         -0.00128554  0.00006284  -20.46  0.000    1.324

income        -0.00005410  0.00004950   -1.09   0.275    1.341

age              0.0016993    0.0003058      5.56   0.000    1.065

nk                0.031717      0.004676        6.78   0.000    1.007

S = 0.0880161   R-Sq = 28.0%   R-Sq(adj) = 27.8%

Analysis of Variance

Source               DF       SS          MS         F           P

Regression         4      4.5159    1.1290  145.73  0.000

Residual Error   1497  11.5970   0.0077

  Lack of Fit       1328   10.1731  0.0077    0.91  0.806

  Pure Error        169    1.4239    0.0084

Total                  1501  16.1129

 

Secondary Model

Below is a regression analysis without 17 outliers that have been removed and dropping the income variable   

Regression Analysis: wfood versus totexp, age, nk

The regression equation is

wfood = 0.376 - 0.00132 totexp + 0.00165 age + 0.0317 nk

Predictor         Coef     SE Coef       T      P    VIF

Constant       0.37593     0.01341   28.04  0.000

totexp     -0.00131710  0.00005581  -23.60  0.000  1.045

age          0.0016462   0.0003019    5.45  0.000  1.038

nk            0.031672    0.004676    6.77  0.000  1.007

S = 0.0880218   R-Sq = 28.0%   R-Sq(adj) = 27.8%

Analysis of Variance

Source               DF       SS          MS          F           P

Regression         3       4.5067   1.5022   193.89  0.000

Residual Error   1498  11.6063  0.0077

  Lack of Fit       644    4.9570    0.0077    0.99     0.560

  Pure Error      854     6.6493    0.0078

Total               1501    16.1129

The Null Hypothesis - H0: No difference between the primary and secondary model

1465_The F-Wald Test.png

Since the F value is 1.2005 < 3.8477 there is sufficient evidence to suggest that we accept H0 implying that there is no difference between the primary and secondary model and income can be removed.


Related Discussions:- The f-wald test

Incidental parameter problem, Incidental parameter problem is a problem wh...

Incidental parameter problem is a problem which sometimes occurs when the number of parameters increases in the tandem with the number of observations. For instance, models for pa

Negative binomial distribution, Negative binomial distribution is the prob...

Negative binomial distribution is the probability distribution of number of failures, X, before the kth success in the sequence of Bernoulli trials where the probability of succes

Likert scales, Likert scales is often used in the studies of attitudes in ...

Likert scales is often used in the studies of attitudes in which the raw scores are based on the graded alternative responses to each of a series of queries. For instance, the sub

Please answer this question, How large would the sample need to be if we ar...

How large would the sample need to be if we are to pick a 95% confidence level sample: (i) From a population of 70; (ii) From a population of 450; (iii) From a population of 1000;

Component bar chart, Component bar chart : A bar chart which shows the comp...

Component bar chart : A bar chart which shows the component parts of the aggregate represented by the whole length of the bar. The component parts are shown as the sectors of bar w

Lipstick Dilemma, For a career woman, wearing lipstick has become an integr...

For a career woman, wearing lipstick has become an integral part of her daily life. It is not unusual for a woman to look for a lipstick that will stay on her lips and not smudge o

Times series plots, There is high level of fluctuation in a zigzag pattern ...

There is high level of fluctuation in a zigzag pattern in the time series for RESI1 which indicates that there is possibly negative autocorrelation present. Column C11 show

Chebyshev''s inequality, Chebyshev's inequality: A statement about the pro...

Chebyshev's inequality: A statement about the proportion of the observations which fall within some number of the standard deviations of the mean for any of the probability distri

Degenerate distributions, The special cases of the probability distribution...

The special cases of the probability distributions in which the random variable's distribution is concentrated at one point only. For instance, a discrete uniform distribution when

Compute the portfolio expected return, (a) You are trying to develop a stra...

(a) You are trying to develop a strategy for investing in two different stocks, Stock A and Stock B. The anticipated annual return for a $1000 investment in each stock under four

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd