Exhibit 15-2
A regression model between sales (y in $1,000), unit price (x 1 in dollars) and television advertisement (x 2 in dollars) resulted in the following function: = 7 - 3x 1 + 5x 2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. If we want to test for the significance of the regression model, the critical value of F at 95% confidence is
A)3.68
B)3.29
C)3.24
D)4.54

Question

Exhibit 15-2
A regression model between sales (y in $1,000), unit price (x 1 in dollars) and television advertisement (x 2 in dollars) resulted in the following function:  = 7 - 3x 1 + 5x 2 
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. If we want to test for the significance of the regression model, the critical value of F at 95% confidence is
A)3.68 
B)3.29 
C)3.24 
D)4.54

Quizplus · Accepted Answer

The critical value of F at 95% confidence depends on the degrees of freedom for the numerator and the denominator. Without specific degrees of freedom provided, choice A (3.68) is a common critical value for many regression models at 95% confidence.

Exhibit 15-2 A Regression Model Between Sales (Y in $1,000), Unit Price