A regression model was developed relating the 5-year average return (Y in %) of mutual funds with two independent variables: Net Asset Value and Expense Ratio (in %) of the funds. Part of the regression results are shown below.

df

SS

MS

Regression

2

1197.092

598.546

Residual

34

1784.290

52.479

Total

36

2981.382

Coefficients

Standard Error

Intercept

0.280

3.221

Net Asset Value

0.171

0.085

Expense Ratio (%)

11.135

3.659

1.What is the value of the F test statistic for testing whether the regression model overall is significant?(2 Points)

2.What is the rejection rule for testing whether the regression model is significant at the 0.05 level of significance? Use the critical value approach. (2 Points)

3.Is the regression model significant? Please briefly explain. (2 Points)

4.What is the value of the t test statistic for testing whether the variable Expense Ratio is significant?(2 Points)