A multiple regression analysis based on a data set that consists of 30 observations yielded the following estimated equation:
Q = 120 - 1.1P + 3.7I + 0.09A
Where P is price, I is income, and A is advertising. If the coefficient of determination is 0.80, then the F statistic is
A) 34.67.
B) 29.35.
C) 21.23.
D) 4.67.

Question

Quizplus · Accepted Answer

The F statistic in a regression analysis is calculated using the formula $F = \frac{R^2 / k}{(1 - R^2) / (n - k - 1)}$, where $R^2$ is the coefficient of determination, $k$ is the number of independent variables, and $n$ is the number of observations. Here, $R^2 = 0.80$, $k = 3$ (since there are three independent variables: P, I, and A), and $n = 30$. Plugging these values into the formula gives $F = \frac{0.80 / 3}{(1 - 0.80) / (30 - 3 - 1)} = \frac{0.2667}{0.007692} = 34.67$.

A Multiple Regression Analysis Based on a Data Set That