SCENARIO 13-10
The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars)for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results:

-Referring to Scenario 13-10,the value of the F test statistic equals the square of the t test statistic when testing whether the number of customers who make purchases is a good predictor for weekly sales.

Question

SCENARIO 13-10
The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars)for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results:
  
-Referring to Scenario 13-10,the value of the F test statistic equals the square of the t test statistic when testing whether the number of customers who make purchases is a good predictor for weekly sales.

Quizplus · Accepted Answer

This statement is true. The F test statistic is computed by dividing the variance of the regression model by the variance of the residuals. The t test statistic is computed by dividing the coefficient estimate of the predictor variable by its standard error. The square of the t test statistic for the predictor variable is equal to the F test statistic.

SCENARIO 13-10 the Management of a Chain Electronic Store Would Like to Like