Use the following to answer the question(s) below.
Weekly commodity prices for heating oil (in cents) were obtained and regressed against time. Below is the regression output and residual plots from fitting a linear model.
-Which of the following statements is true?
A) The t-test for the regression slope indicates that it is significantly different from zero.
B) The model explains 71.9% of the variability in heating oil prices.
C) The linear model is appropriate.
D) The t-test for the regression slope indicates that it is significantly different from zero and the model explains 71.9% of the variability in heating oil prices.
E) All of the statements given are true.

Question

Use the following to answer the question(s) below.
Weekly commodity prices for heating oil (in cents) were obtained and regressed against time. Below is the regression output and residual plots from fitting a linear model.    
-Which of the following statements is true?
A) The t-test for the regression slope indicates that it is significantly different from zero. 
B) The model explains 71.9% of the variability in heating oil prices. 
C) The linear model is appropriate. 
D) The t-test for the regression slope indicates that it is significantly different from zero and the model explains 71.9% of the variability in heating oil prices. 
E) All of the statements given are true.

Quizplus · Accepted Answer

The t-test for the regression slope indicates that it is significantly different from zero, and the model explains 71.9% of the variability in heating oil prices. This can be seen from the regression output where the p-value for the slope coefficient is less than 0.05, indicating statistical significance, and the R-squared value is 0.719, indicating that the model explains 71.9% of the variability in the data. The residual plots also show no clear pattern, suggesting that the linear model is appropriate. Therefore, statement D is the correct answer.

Use the Following to Answer the Question(s) Below