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 and the number of traffic tickets received by the individual.You performed a regression analysis in EXCEL and obtained the following partial information:
-True or False: Referring to Table 14-10,to test the significance of the multiple regression model,the null hypothesis should be rejected while allowing for 1% probability of committing a type I error.

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 and the number of traffic tickets received by the individual.You performed a regression analysis in EXCEL and obtained the following partial information: 
-True or False: Referring to Table 14-10,to test the significance of the multiple regression model,the null hypothesis should be rejected while allowing for 1% probability of committing a type I error.

Quizplus · Accepted Answer

The p-value for the F-test is less than 0.01, which indicates that the multiple regression model is significant at the 1% level. Therefore, the null hypothesis should be rejected at this level of significance.

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