Refer to the portion of regression results in the accompanying table. When testi

Question

Refer to the portion of regression results in the accompanying table.

When testing the overall significance of the regression model at the 5% level given a critical value of F0.05,(2.20) = 3.49, the decision is to _____________________________________________________________.

A-- reject H0 and conclude that the explanatory variables are jointly significant.

B-- not reject H0 and conclude that the explanatory variables are jointly significant.

C-- reject H0 and conclude that the explanatory variables are not jointly significant.

df SS MS F Significance F Regression 2 7,562 3,781 0.0028 Residual 20 9,395 470 Total 22 16,957

Explanation / Answer

Ans:

Test statisctic:

F=3781/470=8.045

critical F-value=FINV(0.05,2,20)=3.493

As,F=8.045>3.493,we reject null hypothesis,H0.

Option A is correct.

Reject H0 and conclude that the explanatory variables are jointly significant.

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