A regression equation with 4 independent variables is estimated using 20 data points. The R2 is 0.46. An analyst is testing to see whether all of the coefficients are equal to zero. The p-value for the test is: A) lower than 0.025. B) between 0.05 and 0.10. C) greater than 0.10. D) between 0.025 and 0.05.
D. Edit: I can explain if needed. maratikus and chrismaths helped me solve one like this awhile ago. Edit 2: Chrismaths beat me to my explanation!
We need an F test. Assume TSS = 1 so: F stat = (0.46/4)/(0.54/15) = 3.195 F4,15 (2.5%) = 3.8, F4,15 (5%) = 3.06, so 2.5%
ok i SOOO need to review quant
Yep, The correct ans is ‘D’. Got tripped by this one and had a blockade from where to start solving this question. Looked at the solution and they say assume SST = 1 and that really made life too easy to live.
I need more quant assistance here the coming weeks… thanks for this one.