Econometrics Coursework Example | Topics and Well Written Essays - 750 words

Econometrics - Coursework Example The null hypothesis that students whose language is not English are not more eager readers of fiction than those who speak English at home is therefore proved false, against the alternative hypothesis. The alternative hypothesis that the students whose language is not English are more eager readers of fiction than those who speak English at home, is proved to be true. Minimizing the residual value of the sum of square will maximize the value of R2 so that the optimization problem does not provide a coefficient that is less than or greater than zero. The values of R2 increase in the sequence shown below: If there was only one variable for the regression model, it would be logical to use the variable with the greatest coefficient to maximize the power of the model. In this case, for all the models, we use noeng as the variable for maximizing the powers of the models. This is because noeng has the greatest coefficient in all the