Exhibit 13-2
A regression model between sales Y in $1,000), unit price X1 in dollars) and television advertisement X2 in dollars) resulted in the following function:
$\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. To test for the significance of the model, the p-value is
A) less than 0.01
B) between 0.01 and 0.025
C) between 0.025 and 0.05
D) between 0.05 and 0.10

Question

Exhibit 13-2
A regression model between sales Y in $1,000), unit price X1 in dollars) and television advertisement X2 in dollars) resulted in the following function:
 $\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. To test for the significance of the model, the p-value is
A) less than 0.01
B) between 0.01 and 0.025
C) between 0.025 and 0.05
D) between 0.05 and 0.10

Quizplus · Accepted Answer

The F-statistic can be calculated using the formula: F = (SSR/k) / (SSE/(n-k-1)), where k is the number of predictors and n is the sample size. Here, F = (3500/2) / (1500/15) = 17.5. With 2 and 15 degrees of freedom, this F-value corresponds to a p-value less than 0.01, indicating the model is significant.

Exhibit 13-2 a Regression Model Between Sales Y in $1,000) Y^\hat { Y }Y^

Exhibit 13-2
a Regression Model Between Sales Y in $1,000) $\hat { Y }$