Instruction 13.20
You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premium depends 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 Instruction 13.20,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

Instruction 13.20
You worked as an intern at We Always Win Car Insurance Company last summer. You notice that individual car insurance premium depends 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 Instruction 13.20,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 (alpha), which is 0.01 for a 1% probability of committing a Type I error. Rejecting the null hypothesis indicates that at least one of the predictors is significantly related to the response variable, not that we allow for a 1% probability of error in rejecting the null hypothesis.

Instruction 13.20 You Worked as an Intern at We Always Win Car