Question: Suppose that a linear regression model with k = 2 regressors has been fi t to n = 25 observations and R2 = 0.90. a.

Suppose that a linear regression model with k = 2 regressors has been fi t to n = 25 observations and R2

= 0.90.

a. Test for signifi cance of regression at α = 0.05. Use the results of the previous problem.

b. What is the smallest value of R2 that would lead to the conclusion of a signifi cant regression if α = 0.05? Are you surprised at how small this value of R2 is?

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