Solutions Statistics

Refer to your Excel regression report. Look for the ANOVA report. Identify this F ratio. What does t

Question: Refer to your Excel regression report. Look for the ANOVA report. Identify this F ratio. What does the F ratio tell you about the fit of the regression equation to the sample points? What does it suggest?

(Hint: If the F ratio is significant, the regression line is a good fit. If the F ratio is not significant, then the regression line does not fit the sample points very well.)

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.711984
R Square	0.506921
Adjusted R Square	0.468992
Standard Error	2841.653
Observations	15

ANOVA
	df	SS	MS	F	Significance F
Regression	1	1.08E+08	1.08E+08	13.36494	0.002905
Residual	13	1.05E+08	8074991
Total	14	2.13E+08

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	16500.55	1714.568	9.623738	2.8E-07	12796.45	20204.65
Age of Car (in yrs.)	-1931.32	528.2893	-3.65581	0.002905	-3072.62	-790.026