The editors of a national automotive magazine recently studi

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon. A number of different independent variables were collected. The following regression output (with some values missing) was recently presented to the editors by the magazine\'s analysts:

Based on this output and your understanding of multiple regression analysis, which of the following statements is true?

A) The standard error of the estimate is a negative value due to the multicollinearity problems in the model.

B) The overall multiple regression model explains a significant portion of the variation in highway mileage when tested at a significance level of 0.05.

C) Only the two independent variables are statistically significant in the presence of the others when a significance level of 0.05 is used to test.

D) None of the above is true.

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon. A number of different independent variables were collected. The following regression output (with some values missing) was recently presented to the editors by the magazine\'s analysts: Based on this output and your understanding of multiple regression analysis, which of the following statements is true? A) The standard error of the estimate is a negative value due to the multicollinearity problems in the model. B) The overall multiple regression model explains a significant portion of the variation in highway mileage when tested at a significance level of 0.05. C) Only the two independent variables are statistically significant in the presence of the others when a significance level of 0.05 is used to test. D) None of the above is true.

Solution

B) The overall multiple regression model explains a significant portion of the variation in highway mileage when tested at a significance level of 0.05.