In Order to Test for the Significance of a Regression

question 95

Multiple Choice

In order to test for the significance of a regression model involving 3 independent variables and 47 observations, the numerator and denominator degrees of freedom (respectively) for the critical value of F are

• A) 47 and 3.
• B) 3 and 47.
• C) 2 and 43.
• D) 3 and 43.

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Definitions:

Accounts Payable

Liabilities owed by a business to its creditors for purchases or services rendered that are expected to be paid off within a year.

Inventory Reduction

A strategy to decrease the amount of inventory that a company holds in order to improve cash flow or reduce storage costs.

Tax Refund

The amount of money returned to a taxpayer by the government when the taxpayer's paid taxes exceed their tax liability for a given year.