A multiple regression is shown for a data set of yachts where the dependent variable is the price in thousands of dollars. Given this information,which is correct regarding the test of the overall model using the 0.10 level of significance?
A)The overall model does not have significant ability to predict the price of a yacht because p-value = .163 is greater than 0.10
B)The overall model has significant ability to predict the price of a yacht because p-value = 0.163 is greater than 0.10
C)The overall model does not have significant ability to predict the price of a yacht because p-value = .001 is less than 0.10
D)The overall model has significant ability to predict the price of a yacht because p-value = .001 is less than 0.10

Question

A multiple regression is shown for a data set of yachts where the dependent variable is the price in thousands of dollars.  Given this information,which is correct regarding the test of the overall model using the 0.10 level of significance?
A)The overall model does not have significant ability to predict the price of a yacht because p-value = .163 is greater than 0.10 
B)The overall model has significant ability to predict the price of a yacht because p-value = 0.163 is greater than 0.10 
C)The overall model does not have significant ability to predict the price of a yacht because p-value = .001 is less than 0.10 
D)The overall model has significant ability to predict the price of a yacht because p-value = .001 is less than 0.10

Quizplus · Accepted Answer

The p-value for the overall model is .001 which is less than the level of significance of 0.10. This indicates that the model has significant ability to predict the price of a yacht. Therefore, option D is correct.

A Multiple Regression Is Shown for a Data Set of Yachts