Y=β β X β X β X ε: Model Summary

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An investment advisor attempted to assess the purchase intention of investors in Colombo Stock

Exchange (CSE) by administrating a questionnaire among 200 investors. He used the following
multiple linear regression model.
Y =β 0 + β1 X 1 + β 2 X 2 + β 3 X 3 + ε
Where, Y is the Purchase Intention. X 1, X2, and X3 represent Attitude, Subjective Norms, and
Perceived Behavior respectively. Following partial output obtained on this regard is provided.
Model Summaryb
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .883a .780 .773 .441

ANOVAa
Model Sum of df Mean F Sig.
Model Squares
Unstandardized Square
Standardized t Sig.=
Regression Coefficients
63.671 3 Coefficients
21.224 109.042 Pcalb
.000
1 Residual B 17.907 Std. Error
92 Beta
.195
(Constant)
Total .906
81.577 .299
95 3.024 .003
X1 Variable: Y .042
a. Dependent .065 .047 .638 .525
1
b. Predictors:
X2 (Constant), X3,.641
X2, X1 .053 .800 12.051 .000
X3 .095 .082 .081 1.164 .248
Coefficientsa
Interpret the results

Derived model --- Basic model

Y =0.906+0.042 X 1 +0.641 X 2 +0.095 X 3 +ϵ

H 0 : β1 =0 / Attitude is not significant


H 1 : β 1 ≠ 0 / Attitude is significant

Test Statistic
tcal = 0.638 / Pcal = 0.525

Critical t Value
Table t-value = 1.984 / Pcir = 0.05

tcal = 0.638 < Table t-value = 1.984


Pcal = 0.525 > Pcir = 0.05

Y =0.906+0.641 X 2 +ϵ

H0 = The model is not sig

H1: The model is sig

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