Question

A regression model between sales (y in $1000), unit price (x1 in dollars), and television advertisement (x2 in dollars) resulted in the following function: Ŷ = 7 - 3x1 + 5x2 For this model, SSR = 3500, SSE = 1500, and the sample size is 18. If we want to test for the significance of the regression model, the critical value of F at the 5% level of significance is a. 3.29. b. 3.24. c. 3.68. d. 4.54.

Answer 1

Answer: C. 3.68

Explanation:

Given that;

Sample size n = 18

degree of freedom for numerator k = 2

degree of freedom for denominator = n - k - 1 = (18-2-1) = 15

level of significance = 5% = 5/100 = 0.05

From the table values,

the critical value of F at 0.05 significance level with (2, 18) degrees of freedom is 3.68

Therefore option C. 3.68 is the correct answer