Question: Inference basics. You run a multiple regression with 27 cases and 3 explanatory variables. The ANOVA table includes the sums of squares SSR = 16

Inference basics. You run a multiple regression with 27 cases and 3 explanatory variables. The ANOVA table includes the sums of squares SSR = 16 and SSE = 120.

(a) Find the F statistic for testing the null hypothesis that the regression coefficients for the 3 explanatory variables are all zero.

Carry out the significance test and report the results.

(b) What is the value of R2 for this model? Explain what this number tells us.

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