5 For the F test of the entire model the null hypothesis HO

5. For the F test of the entire model, the null hypothesis (HO) is equivalent to (where ?2 is the

population regression fit):

a. ?2 = 0

b. ?2 ? 0

c. ß1 = 0

d. ß1 ? 0

e. ? = 0

6. How many predictor variables are significant at the 5% significance level using two-tailed

tests?

a. 0

b. 1

c. 2

d. 3

e. 4

7. If X1 = 800; X2 = 5; X3 = 30; and X4 = 0, the predicted value of Sales is approximately

a. 44,000

b. 51,000

c. 69,000

d. 73,000

e. 81,000

Coef 138315 -11.56 -1127.7 -1813.7 8125 SE Coetf 14750 13.13 463.2 227.4 2155 Predictor Constant 0.38 0.000 0.399 0.035 0.000 0.004 -0.88 -2.43 X2 X2 X4 3.7 s 2818 R-sq 98.2% R-Sq (adj ) = 97.5% = Analysis of Variance Source Regression Residual Error 1 Total DF 4 438234 7940 446174 MS 109558 794 137.90 0.000 14

Solution

5.

The null hypotheses would almost always be rho2 = 0. [OPTION A]

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6.

The p values of X2, X3, and X4 are all less than 0.05.

Thus, there are THREE. [ANSWER, OPTION D]

******************

7.

From the coefficients,

y = 138315 - 11.56X1 - 1127.7X2 - 1813.7X3 + 8125X0

Thus,

y = 69017.5 or

y = 69 000 [ANSWER, OPTION C]