A prediction equation for sales and payroll was performed using simple linear regression. In the regression printout
Question:
A prediction equation for sales and payroll was performed using simple linear regression. In the regression printout shown below, which of the following statements is not true? SUMMARY OUTPUT Regression Statistics Multiple R 0.833333 R Square 0.694444 Adjusted R Square 0.618056 Standard Error 1.311011 Observations 6 ANOVA Df SS MS F Significance F Regression 1 15.625 15.625 9.090909 0.039352 Residual 4 6.875 1.71875 Total 5 22.5 Coefficients Standard Error t Stat P-Value Lower 95% Upper 95% Intercept 2 1.742544 1.147747 0.31505 -2.83808 6.838077 Payroll (X) 1.25 0.414578 3.015113 0.039352 0.098947 2.401053
A) Payroll is a good predictor of Sales based on α = 0.05.
B) There is evidence of a positive linear relationship between Sales and Payroll based on α = 0.05.
C) Payroll is not a good predictor of Sales based on α = 0.01.
D) The coefficient of determination is equal to 0.833333.
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws