SCENARIO 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage
spending by companies.She proceeds to randomly select 26 large corporations and record
information in millions of dollars.The Microsoft Excel output below shows results of this multiple
regression.
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, which of the following values for α is the smallest for which the
Regression model as a whole is significant?
A) 0.00005
B) 0.001
C) 0.01
D) 0.05

Question

SCENARIO 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage
spending by companies.She proceeds to randomly select 26 large corporations and record
information in millions of dollars.The Microsoft Excel output below shows results of this multiple
regression.  
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, which of the following values for α is the smallest for which the
Regression model as a whole is significant?
A) 0.00005 
B) 0.001 
C) 0.01 
D) 0.05

Quizplus · Accepted Answer

The smallest value of α for which the regression model is significant is the one that is just greater than the p-value of the model. Since 0.001 is the smallest among the given options that can still be significant, it is the correct choice.

SCENARIO 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced