A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars)as a function of Size (measured in thousands of square feet)and whether or not there is a fireplace (FP is 0 if there is no fireplace,1 if there is a fireplace).The regression output is provided below.Some of the information has been omitted. Which of the following conclusions can be made based on the F-test?
A)The p-value on the F-test will be very high.
B)At least one of the predictors is useful in explaining Y.
C)The model is of no use in predicting the selling prices of houses.
D)The estimates were based on a sample of 19 houses.

Question

A realtor is trying to predict the selling price of houses in Greenville (in thousands of dollars)as a function of Size (measured in thousands of square feet)and whether or not there is a fireplace (FP is 0 if there is no fireplace,1 if there is a fireplace).The regression output is provided below.Some of the information has been omitted.  Which of the following conclusions can be made based on the F-test?
A)The p-value on the F-test will be very high. 
B)At least one of the predictors is useful in explaining Y. 
C)The model is of no use in predicting the selling prices of houses. 
D)The estimates were based on a sample of 19 houses.

Quizplus · Accepted Answer

The F-test is used to determine whether at least one of the predictors included in the model is useful in explaining the variability in the response variable. A high F-statistic and low p-value indicate that at least one predictor is useful. Therefore, we can conclude that at least one of the predictors (Size and FP) is useful in explaining the selling price of houses in Greenville.

A Realtor Is Trying to Predict the Selling Price of Houses