A regression model between sales (y in $1000) , 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.If we want to test for the significance of the regression model, the critical value of F at the 5% level of significance is?

Question

A regression model between sales (y in $1000) , 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.If we want to test for the significance of the regression model, the critical value of F at the 5% level of significance is?

Quizplus · Accepted Answer

The F-statistic is 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/(18-2-1)) = 17.5. The critical value of F at the 5% level of significance with (2, 15) degrees of freedom is approximately 3.68.

A Regression Model Between Sales (Y in $1000), Unit Price y^\hat { y }y^​

A Regression Model Between Sales (Y in $1000), Unit Price $\hat { y }$