Question

In a multiple linear regression model with K independent variables, an F-test is applied to test for the overall fit. If the associated p value (significance F) is smaller than the level of significance, we

A. do not reject the null and conclude that the entire group of independent variables does not explain the dependent variable.
B. reject the null and conclude that the entire group of independent variables does not explain the dependent variable.
C. reject the null and conclude that the entire group of independent variables explains the dependent variable very well.
D. do not reject the null and conclude that the entire group of independent variables explains the dependent variable very well.

Answer 1

In a multiple linear regression model, if the p-value of the F-test is smaller than the level of significance, we reject the null hypothesis and conclude that the independent variables explain the dependent variable well.

Step-by-step explanation:

When conducting an F-test in a multiple linear regression model with K independent variables, the p-value is used to determine the overall fit of the model. If the p-value is smaller than the level of significance (usually denoted as alpha), we reject the null hypothesis and conclude that the entire group of independent variables explains the dependent variable well. Therefore, the correct answer is option C.