Refer to below regression results. When testing the overall significance of the regression model at the 5% level given a critical value of F_0.05,(2.20) = 3.49, the decision is to ________. A) reject H₀; we can conclude that the explanatory variables are jointly significant. B) not reject H₀; we can conclude that the explanatory variables are jointly significant. C) reject H₀; we cannot conclude that the explanatory variables are jointly significant. D) not reject H₀; we cannot conclude the explanatory variables are jointly significant.

Question

Quizplus · Accepted Answer

The F-statistic obtained (5.05) is greater than the critical value provided (3.49) at the 5% level of significance, indicating that at least one of the explanatory variables in the regression model is significant in explaining the response variable. Therefore, the null hypothesis (H₀) that all of the regression coefficients are equal to zero can be rejected, and it can be concluded that the explanatory variables are jointly significant. Hence, the correct choice is A) reject H₀; we can conclude that the explanatory variables are jointly significant.

Refer to Below Regression Results