Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 12

When atndrte2 and ACT_atndrte are added to the equation estimated in (6.19), the R-squared becomes .232. Are these additional terms jointly significant at the 10% level? Would you include them in the model?

Step 1 of 2

The F-test is the statistical test that is used to test the significance of the overall regression model. In the null hypothesis, it assumes that added variables have no effect on the model and in the alternative hypothesis, it assumes that added variables have significant effect on the model.