An investor plans to develop a regression model for the appraisal value (in thousands of dollars) of property in her city (Y) based on 5 numerical variables: Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + ε The investor would like to test whether or not the model has any significance. That is, she would like to test the hypotheses: H0: β1 = β2 = β3 = β4 = β5 = 0 HA: not all βj are zero A sample of 30 items are drawn and the data is used to create the prediction equation: y^ = b0 + b1x1 + b2x2 + b3x3 + b4x4 + b5x5 The regression sum of squares (SSR) is calculated to be 514.8 and the error sum of squares (SSE) is calculated to be 520. An F test is conducted to test the above hypotheses. a)Calculate the test statistic (F) for this test. Give your answer to 2 decimal places. F = b)With a 99% level of confidence, the investor cancannot reject the null hypothesis.
An investor plans to develop a regression model for the appraisal value (in thousands of dollars) of property in
her city (Y) based on 5 numerical variables:
Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + ε
The investor would like to test whether or not the model has any significance. That is, she would like to test the hypotheses:
H0: β1 = β2 = β3 = β4 = β5 = 0
HA: not all βj are zero
A sample of 30 items are drawn and the data is used to create the prediction equation:
y^ = b0 + b1x1 + b2x2 + b3x3 + b4x4 + b5x5
The regression sum of squares (SSR) is calculated to be 514.8 and the error sum of squares (SSE) is calculated to be 520. An F test is conducted to test the above hypotheses.
a)Calculate the test statistic (F) for this test. Give your answer to 2 decimal places.
F =
b)With a 99% level of confidence, the investor cancannot reject the null hypothesis.
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