Exhibit 13-2
A regression model between sales (y in $1,000), unit price (x 1 in dollars) and television advertisement (x 2 in dollars) resulted in the following function: = 7 - 3x 1 + 5x 2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. If SSR = 600 and SSE = 300, the test statistic F is
A)2.33
B)0.70
C)17.5
D)1.75

Question

Exhibit 13-2
A regression model between sales (y in $1,000), unit price (x 1 in dollars) and television advertisement (x 2 in dollars) resulted in the following function:  = 7 - 3x 1 + 5x 2 
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. If SSR = 600 and SSE = 300, the test statistic F is
A)2.33 
B)0.70 
C)17.5 
D)1.75

Quizplus · Accepted Answer

The formula for the F-test in regression analysis is F = (SSR/k) / (SSE/(n-k-1)), where k is the number of independent variables and n is the sample size. 
Plugging in the given values, F = (600/2) / (300/15) = 17.5.
Therefore, the answer is C.

Exhibit 13-2 A Regression Model Between Sales (Y in $1,000), Unit Price