refer to the following:
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:

‪
where Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and P R is the price of a related product. The results of the estimation are presented below:

-At the 1% level of significance, the critical value of the F-statistic is equal to __________.
A) 0.7984
B) 4.57
C) 36.14
D) 2.763
E) -3.50

Question

refer to the following:
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm: 
 
‪  
where Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and P R is the price of a related product. The results of the estimation are presented below:
 
-At the 1% level of significance, the critical value of the F-statistic is equal to __________.
A) 0.7984 
B) 4.57 
C) 36.14 
D) 2.763 
E) -3.50

Quizplus · Accepted Answer

The critical value of an F-statistic depends on the degrees of freedom for the numerator and the denominator as well as the level of significance. At the 1% level of significance, common critical values are often above 4, making option B (4.57) a plausible critical value for certain degrees of freedom. Options like 0.7984, 2.763, and 3.50 are more typical of critical values at higher levels of significance (e.g., 5% or 10%). The notation for the F-statistic and its critical values does not include options like "F1F1F1S1?F1F1F10" or "F1F1F1S1?F1F1F103.50," making option B the most reasonable choice given standard statistical tables and practices.

Refer to the Following