Why people hold onto money Essay Example | Topics and Well Written Essays - 2000 words

Why people hold onto money - Essay Example The adjusted R squared is used to compare the explanatory power of regression model, which has different numbers of prediction variables. The variable is usually an adjusted version of R squared. The R squared is adjusted subject to the predictor of the mode of concern like econometric models. The adjusted value for R2 for the current model is 0.957985165. This implies that the predictors of the model are reliable. It is denoted by: F-test is usually made up of two chi-square variables, which are independent. The variables are divided by the appropriate degrees of freedom. The F-test is characterized by negative F values and a non-symmetric distribution of values. Additionally, the mean of the F-test is 1. The major purpose of the F-test is to ascertain whether the variances of two populations are equal. In this regard, the ration is one when the population variances are equal. In the above case, the population variances were equal because the F significance is 0. F-test applies when the null hypothesis is true. The F-test is denoted by: This is a standardized value, which is obtained from sample data. The t-test is used in conjunction with the F-test to determine the reliability of the null hypothesis. In this regard, the t-test helps a researcher to compare the results of the null hypothesis and the researcher’s data successfully. The value also helps in the computation of p-value when the null hypothesis ought to be rejected. The t-test for the above model is 4.788. The t-test indicates that the null hypothesis should be upheld. It is denoted by: The explained sum of squares represents the total sum of squares of deviation from mean value, of various predicted values. In this regard, high values of the sum of squares indicate reliability of the model used for statistical analysis. It is denoted by: The demand for money is based on the function of money, which include medium of exchange and store of value. This implies that people