In a multiple regression model with three right-hand-side variables and 105 observations estimated by OLS, the researcher must decide whether to include a fourth right-hand-side variable. The residual sum of squares is 250 with four variables and 300 with three variables. Critical values of the F-table (α=0.05) are F(1,100)=3.89, F(2,100)=3.09, F(3,100)=2.70, F(4,100)=2.46, F(5,100)=2.31. This means when the fourth variable is included, the fit of the regression
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In a multiple regression model with three right-hand-side variables and 105 observations estimated by OLS, the researcher must decide whether to include a fourth right-hand-side variable. The residual sum of squares is 250 with four variables and 300 with three variables. Critical values of the F -table (α = 0.05) are F(1,100) = 3.89, F(2,100) = 3.09, F(3,100) = 2.70, F(4,100) = 2.46, F(5,100) = 2.31. This means when the fourth variable is included, the fit of the regression (A) there is insufficient information to make a determination about fit (B) worsens significantly (C) has no significant change (D) improves significantly
Also written as: In a multiple regression model with three right-hand-side variables and 105 observations estimated by OLS, the researcher must decide whether to include a fourth right-hand-side variable. The residual sum of squares is 250 with four variables and 300 with three variables. Critical values of the F -table (alpha = 0.05) are F(1,100) = 3.89, F(2,100) = 3.09, F(3,100) = 2.70, F(4,100) = 2.46, F(5,100) = 2.31. This means when the fourth variable is included, the fit of the regression
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What this question tests
This question is on t-tests, F-tests and testing restrictions, part of Linear regression and OLS in Econometrics.
Testing a single coefficient, several coefficients, or a linear restriction.
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