Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female).
$\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. The test statistic for testing the significance of the model is
A) 0.73
B) 1.47
C) 28.69
D) 5.22

Question

Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female).
 $\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. The test statistic for testing the significance of the model is
A) 0.73
B) 1.47
C) 28.69
D) 5.22

Quizplus · Accepted Answer

The test statistic for the significance of the model is calculated using the formula F = (SST - SSE) / (k) / (SSE / (n - k - 1)), where k is the number of independent variables and n is the number of observations. Here, F = (1200 - 384) / 2 / (384 / (30 - 2 - 1)) = 28.69.

Exhibit 13-8 the Following Estimated Regression Model Was Developed Relating Y^\hat { Y }Y^

Exhibit 13-8
the Following Estimated Regression Model Was Developed Relating $\hat { Y }$