TABLE 13-10
You worked as an intern at We Always Win Car Insurance Company last summer. You noticed that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in Microsoft Excel and obtained the following information:

-Referring to Table 13-10, to test the significance of the multiple regression model, what is the form of the null hypothesis?
A) H₀: β₀
B) H₀: β₁
C) H₀: β₁ = β₂ = β₃
D) H₀: β₀ = β₁ = β₂ = β₃

Question

TABLE 13-10
You worked as an intern at We Always Win Car Insurance Company last summer. You noticed that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in Microsoft Excel and obtained the following information:
 
-Referring to Table 13-10, to test the significance of the multiple regression model, what is the form of the null hypothesis?
A) H₀: β₀ 
B) H₀: β₁ 
C) H₀: β₁ = β₂ = β₃ 
D) H₀: β₀ = β₁ = β₂ = β₃

Quizplus · Accepted Answer

The null hypothesis for testing the significance of the multiple regression model is that all of the regression coefficients (β₁, β₂, β₃) are equal to zero. Therefore, the correct form of the null hypothesis is H₀: β₁ = β₂ = β₃.

TABLE 13-10 You Worked as an Intern at We Always Win Car