Question

A regression model was developed relating amount charge to a credit card of ABC Bank with two independent variables: Household Size and Income (in thousands) of the customer. Part of the regression results are shown below

1.   What is the value of the F test statistic for testing whether the regression model overall is significant? (2 Points)

2.   What is the rejection rule for testing whether the regression model is significant at the 0.05 level of significance? Use the critical value approach. (2 Points)

3.   Is the regression model significant? Please briefly explain. (2 Points)

4.   What is the value of the t test statistic for testing whether the variable Income is significant?   (2 Points)  

	df	SS	MS
Regression	2	30924371.067	15462185.533
Residual	43	5884606.585	136851.316
Total	45	36808977.652
	Coefficients	Standard Error
Intercept	1450.463	190.845
Income	30.798	3.945
Household Size	350.980	32.469

Answer 1