TABLE 14-10
You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in Excel and obtained the following information:

-Referring to Table 14-10, to test the significance of the multiple regression model, what is the form of the null hypothesis?
A) H₀: β₀
B) H₀: β₁
C) H₀: β₁ = β₂ = β₃
D) H₀: β₀ = β₁ = β₂ = β₃

Question

TABLE 14-10
You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in Excel and obtained the following information:
 
-Referring to Table 14-10, to test the significance of the multiple regression model, what is the form of the null hypothesis?
A) H₀: β₀ 
B) H₀: β₁ 
C) H₀: β₁ = β₂ = β₃ 
D) H₀: β₀ = β₁ = β₂ = β₃

Quizplus · Accepted Answer

The null hypothesis for testing the significance of a multiple regression model is that all the slope coefficients are equal to zero, indicating that none of the independent variables have a significant linear relationship with the dependent variable.

TABLE 14-10 You Worked as an Intern at We Always Win Car