TABLE 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression.
-Referring to Table 14-5, which of the following values for α is the smallest for which the regression model as a whole is significant?
A) 0.00005
B) 0.001
C) 0.01
D) 0.05

Question

TABLE 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression. 
-Referring to Table 14-5, which of the following values for α is the smallest for which the regression model as a whole is significant?
A) 0.00005 
B) 0.001 
C) 0.01 
D) 0.05

Quizplus · Accepted Answer

The smallest value of α for which the regression model is significant is the one that is just below the p-value of the F-statistic for the model. Since 0.001 is the smallest option that is typically used in practice and is likely to be significant, it is the correct choice.

TABLE 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced