Exhibit 15-7
A regression model involving 4 independent variables and a sample of 15 periods resulted in the following sum of squares.
SSR = 165
SSE = 60
-Refer to Exhibit 15-7. The test statistic from the information provided is
A)2.110
B)3.480
C)4.710
D)6.875

Question

Quizplus · Accepted Answer

The test statistic for the overall significance of the regression model is calculated using the formula F = (SSR/k) / (SSE/(n-k-1)), where k is the number of independent variables and n is the sample size. Here, k = 4 and n = 15. So, F = (165/4) / (60/(15-4-1)) = 6.875.

Exhibit 15-7 A Regression Model Involving 4 Independent Variables and a Sample