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, the null hypothesis should be rejected while allowing for 1% probability of committing a Type I error.

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, the null hypothesis should be rejected while allowing for 1% probability of committing a Type I error.

Quizplus · Accepted Answer

The null hypothesis should be rejected if the p-value is less than the significance level (0.01 for a 1% probability of Type I error), indicating that the model is statistically significant.

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