Econ Project Statistics Example | Topics and Well Written Essays - 250 words

Econ - Statistics Project Example imilarly, the variable with a positive coefficient such as demo which is 118.3667 implies that an increase of 1 on the x-axis causes the value on the y-axis change by 118.3667. T-statistics aim at determining whether the mean of one set of data differs from the average of another set. According to the T-statistic output, the variable price, end cap and natural have a negative value of T-statistics and therefore they are not statistically significant to the model and this makes the value of R- squared to be 0.416237. Since the three variable with a negative value are not important in the model we remove them and the adjusted value of R-squared reduces to 0.397912, this implies that the variables of the model are more accurate and less correlated. F-statistic is a test of the relationship of different variables that differs in variability. The F-statistic of 22.71486 is the significant difference between the variables that remained after removing the ones with a negative