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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 Pvalue is high, the entire group of variables is not
significant (not important) for forecasting the response variable.
(NOTE to students: The Pvalue 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.
 Fall '12
 Whitten

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