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 = ?0 + ?1X1 + ?2X2 + ?3X3 + ?4X4 + ?5X5 + ?The investor would like to test whether or not the model has any significance. That is, she would like to test the hypotheses: H0: ?1 = ?2 = ?3 = ?4 = ?5 = 0HA: not all ?j are zeroA sample of 30 items are drawn and the data is used to create the prediction equation: y^ = b0 + b1x1 + b2x2 + b3x3 + b4x4 + b5x5The 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.
Originally posted 2018-07-09 20:53:17. Republished by Blog Post Promoter