Below is a regression using X = home price (000), Y = annual
taxes (000), n = 20 homes. (a) Write the fitted regression equation. (b) Write
the formula for each t statistic and verify the t statistics shown below. (c)
State the degrees of freedom for the t tests and find the two-tail critical
value for t by using Appendix D. (d) Use Excels function =TDIST(t,
deg_freedom, tails) to verify the p-value shown for each t statistic (slope,
intercept). (e) Verify that F = t 2 for the slope. (f ) In your own words,
describe the fit of this regression.
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