In a Regression Model Involving 30 Observations, the Following Estimated $\hat { y }$

question 102

Multiple Choice

In a regression model involving 30 observations, the following estimated regression model was obtained: $\hat { y }$ = 60 + 2.8x1 + 1.2 x2 - x3. For this model, total variation in y = SST = 800 and SSE = 200. The value of the F-statistic for testing the validity of this model is:

• A)26.00.
• B)7.69.
• C)3.38.
• D)0.039.

---

Definitions:

Beta

A tool for determining the instability, or systematic risk, present in a security or a portfolio when measured against the general market.

Expected Rate of Return

The anticipated return on an investment, calculated as the weighted average of the possible returns based on their probabilities.

Growth Rate

The measure of a company's or an economy's increase in its revenue, earnings, or asset size over a given period, often expressed as a percentage.

Stock Market

A public market for the trading of company stocks and derivatives at agreed prices, often considered a critical indicator of the economic health of a country.