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, 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, 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, the null hypothesis should be rejected while allowing for 1% probability of committing a type I error.

Quizplus · Accepted Answer

The decision to reject the null hypothesis depends on the p-value of the test statistic compared to the significance level (1% in this case). Without specific p-value information from Table 14-10, we cannot definitively say the null hypothesis should be rejected.

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