A multiple regression model involves 5 independent variables and the sample size is 30. If we want to test the validity of the model at the 5% significance level, the critical value is:
A)2.59.
B)2.53.
C)2.62.
D)2.56.

Question

Quizplus · Accepted Answer

To test the validity of the model at the 5% significance level, we use the F-test. In this case, we have 5 independent variables and 30 total observations, so the degrees of freedom for the numerator are 5 and the degrees of freedom for the denominator are 24 (30-5-1). Using a table or calculator, the critical value for F with 5 and 24 degrees of freedom at the 5% significance level is 2.62. Therefore, the answer is C.

A Multiple Regression Model Involves 5 Independent Variables and the Sample