e3355_quiz_2_version B_edit

E3355_quiz_2_version B_edit

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Unformatted text preview: regression. (a) Briefly explain the purpose of such a test. An F test measures the significance (importance) of a group of predictor variables in forecasting a response variable. (b) Suppose that the P -value for such a test is 0.50. Briefly explain the practical implications for the multiple regression model. Since the P-value is high, the entire group of variables is not significant (not important) for forecasting the response variable. (NOTE to students: The P-value 0.50 means 50% risk of error in concluding that the group of variables is important. That's too risky compared to the typical limits of 5% or 10% risk.)...
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This note was uploaded on 10/26/2013 for the course ECON 3355 taught by Professor Whitten during the Fall '12 term at University of Iowa.

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