Referring to Table 7 and allowing for a 1% probability of committing a type I er

Question

Referring to Table 7 and allowing for a 1% probability of committing a type I error, what is the decision and conclusion for the test H0 : ?1-B2-0 vs. H1 : At least one ?.+0, - 1, 2? Reject HO and conclude that the 2 independent variables taken as a group have 2) Do not reject HO and conclude that the 2 independent variables taken as a 3) Do not reject HO and conclude that the 2 independent variables taken as a 4) significant linear effects on house size group have significant linear effects on house size. group do not have significant linear effects on house size. Reject HO and conclude that the 2 independent variables taken as a group do not have significant linear effects on house size.

Explanation / Answer

1) Reject H0 and conclude that the 2 independent variables taken as a group have significant linear effects on house size.

For this hypothesis testing we use F-stat from the regression.

the significance of f is 0.0000 in test so we can reject the null hypothesis H0.

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