When testing whether the explanatory variables are jointly s
When testing whether the explanatory variables are jointly significant at the 5% level, he
Answer: A. Rejects H0, and concludes that the explanatory variables are jointly significant
Can someone explain this better, i dont understand how he calculated the p-value associated with the value of F(2,27)
thank you
Solution
you just need to find a value in the tables of F distribution with df1 = 2 and df2= 27 and you will get the p value
that is very lower
and as that value is lower than 0.05 we will reject Ho and conclude that the explanatory variables are jointly significant
we conclude that because p value is lower than 0.05, that means that the probability of Ho is true ( p value) is in the rejection region
