A real estate developer wants to develop a regression model to predict the number of housing starts (V) i" his region'ho* the interest rate on long-term treasury bill rate (x1) the federal fund...

6. (f2 maxks) A real estate developer wants to develop a regression model to predict the number of housing starts (V) i" his region'ho* the interest rate on long-term treasury bill rate (x1) the federal fund short-term interest rate (x2) and the short-term interest rate on money market deposits(x3). Rates are in per cent and the regression output below are for data over 14 periods. The regression model is y : 0o * Fr xl * 0zx2 + B3xJ*e (a) What is the value of the standard error of estimate (residual standard deviation) and what does it measure? (b) What is-thT estimate of p1? Interpret its value. (c) Using the F urrH t tests given in the regression output, describe briefly the statistical significance of the relationship between y and the predictors xl, x2, f-, andx3. (d) What are the qgua{pssumptions underlying the regression analysis? t*ks;F . sT4t "-The-regfessipn equati'o*n is y =": g1o + 139 x1 + 5.3 x2 + 3.2 x3 Predictor Constant x1 x2 x3:],tF S = 124.8 Analysis of Variance Source Regression Residual Error Total Coef SE Coef T P -909.8 551.6 -1.65 0.130 138.61 39.52 3. s1 0.006 5.30 50.42 0.11 0.918 3.22 47.32 0.07 0.947 R-Sq = 58.9% R-Sq(adj) = 46.6,/, DF3 10 13 SS 223209 155683 378893lii MS F. P 74403 4.78 0.026 15568 ',, l5