(#2) (Short answer: based on material that will be covered in Lecture 17) Suppose that you have a multiple regression model with two explanatory variables. Both are statistically insignificant in the...

4

Extracted text: (#2) (Short answer: based on material that will be covered in Lecture 17) Suppose that you have a multiple regression model with two explanatory variables. Both are statistically insignificant in the regression (i.e., you do not reject that either slope is equal to zero at a 5% level). Your R-squared value, however, is extremely high (0.95), so you overwhelmingly reject the null hypothesis that the variables are jointly insignificant (the null would be written Ho: Bi=B2=0). How could this be possible?