Question

A multiple regression model involves 5 independent variables and a sample of 10 data points. If we want to test the validity of the model at the 5% significance level, the critical value is:

Answer 1

The critical value is 6.26.

Explanation:

It is provided that there are 5 independent variables involved in a multiple regression model and the sample consist of 10 data points.

The critical value of F to test the significance of the model is:

`\text{Critical Value}=F_(\alpha, (k, n-k-1))`

Here,

k = number of independent variables

n = number of observations.

Then the critical value is:

`\text{Critical Value}=F_(\alpha, (k, n-k-1))`

`=F_(\alpha, (5, 10-5-1))\\=F_(0.05,(5, 4))\\=6.2561\\\approx 6.26`

*Use a F-table.

Thus, the critical value is 6.26.