F test of a multiple regression model:

Cl REGRESSION AND CORRELATION F test of a multiple regression model V The nance department of an automobile insurance company uses a multiple regression model to estimate the total number of accident claims that will be led each month. Based on the most recent 23 months of claims data, the company has selected 3 independent variables that it believes are related to accident claims. Let B1, B2, and B3 denote the coefficients of the 3 variables in this model. When this data is entered into a regression software program, the total sum of squares (SST) associated with the model is reported to be 778.18 and the corresponding regression sum of squares (SSR) is 406.37. Using a signicance level of 0.05, can you conclude that at least one of the independent variables in the model provides useful (i.e., statistically signicant) information for predicting monthly accident claims? Perform a onetailed test. Then ll in the table below. Carry your intermediate computations to at least three decimal places and round your answers as specied in the table. The null hypothesis: H0 3 I] C! REGRESSION AND CORRELATION F test of a multiple regression model 0.05, C; V I conclude that at least one of the independent variables in the model provides useful (i.e., statistically signicant) information for predicting monthly accident claims? Perform a oneetailed test. Then il in the table below. Carry your intermediate computations to at least three decimal places and round your answers as specied in the table. . - p u The null hypotheSIs: H.) - I] B XI Hi : at least one of the independent variables is useful DD Ell: g. Degrees Degrees The alternative hypothesis: Degrees of freedom of of EI=EI SEI UZEI The type of test statistic: freedom freedom dfn : dfd : l:l D that] EIEI The value of the test statistic: (Round to at least two decimal I] X f) Q places.) ' The pevalue: (Round to at least three [I decimal places.) Can you conclude that at least one of the independent variables in the model provides useful 0 Yes 0 No information for predicting monthly accident claims