SCENARIO 13-7
the Department Head of the Accounting Department Wanted

question 96

Short Answer

SCENARIO 13-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units and total SAT scores of each.She takes a sample of 6 students and generates the following Microsoft Excel output: SUMMARY OUTPUT
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.916 \\ \text { R Square } & 0.839 \\ \text { Adjusted R Square } & 0.732 \\ \text { Standard Error } & 0.24685 \\ \text { Observations } & 6 \end{array}$

ANOVA
$\begin{array} { l r c c r c } & d f & \text { SS } & \text { MS } & F & \text { Signif } F \\ \text { Regression } & 2 & 0.95219 & 0.47610 & 7.813 & 0.0646 \\ \text { Residual } & 3 & 0.18281 & 0.06094 & & \\ \text { Total } & 5 & 1.13500 & & & \end{array}$

$\begin{array} { l c r c c } & \text { Coeff } & \text { StdError } & t \text { Stat } & P \text {-value } \\ \text { Intercept } & 4.593897 & 1.13374542 & 4.052 & 0.0271 \\ \text { Units } & - 0.247270 & 0.06268485 & - 3.945 & 0.0290 \\ \text { Total SAT } & 0.001443 & 0.00101241 & 1.425 & 0.2494 \end{array}$
-Referring to SCENARIO 13-7, the department head wants to test H0: $\beta$ 1 = $\beta$ 2 =0 .The critical value of the F test for a level of significance of 0.05 is .

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Equilibrium Quantity

The amount of products or services available matches the amount requested at the prevailing market rate.

Demand Increases

A situation where the desire and ability to purchase goods and services in a market rise, often leading to higher prices if supply remains constant.

Supply Decreases

A reduction in the quantity of a good or service that producers are willing to sell at a given price, often resulting in higher prices.