In a Multiple Regression Analysis Involving 4 Predictor Variables, and 25

question 119

Multiple Choice

In a multiple regression analysis involving 4 predictor variables, and 25 observations, the total sum of squares is 800, and the error sum of squares is 200. The value of the F-test statistic for testing the usefulness of this model must be:

• A) 200
• B) 50
• C) 32
• D) 15
• E) 12

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Definitions:

Proposed Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Net Present Value

The divergence in current value of cash inflows versus outflows over an established time frame.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Project

An organized task or set of activities with a start and end date, aimed at achieving a specific goal or creating a unique product, service, or result.