Computing the F-statistic allows one to:
A) measure the forecasting accuracy of the regression equation.
B) determine which variable contributes the most explanatory power to the regression.
C) measure the degrees of freedom in the regression.
D) predict the increased explanation of any additional variables that might be included.
E) test the overall statistical significance of the regression equation.

Question

Quizplus · Accepted Answer

The F-statistic is used to test the overall statistical significance of the regression equation. It compares the explained variation (the variation in the dependent variable that is accounted for by the regression equation) to the unexplained variation (the variation that is not accounted for by the regression equation). A large F-statistic indicates a high degree of explained variation relative to unexplained variation, suggesting that the regression equation is statistically significant.

Computing the F-Statistic Allows One To