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 calculated by taking the ratio of the variation between the predicted values and the actual values to the variation within the actual values. The t test statistic is calculated to test the significance of the coefficient of the predictor variable in the regression equation. The square of the t test statistic gives the F test statistic. Therefore, the statement is true. This statement is true. The F test statistic is typically used to test the overall significance of a model, including all the predictor variables. In the case of a simple linear regression model with only one predictor variable, the F test statistic will be equal to the square of the t test statistic for that predictor variable.

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