1 of 3 ID: MST.FET.R.MR.01.0020A [3 marks] A simple linear regression model has been developed and an F test is going to be conducted to determine whether the model is statistically significant. Select whether each statement about the F test is correct or not correct. Correct Not correct a) The F test is a two-tail test. O O b) The F test assesses whether the parameter B, is 0. O O c) The test statistic used in the F test is the ratio of the regression sum of squares and the error sum of squares. O O 2 of 3 ID: MST.FET.R.MR.02.0040A [2 marks] An investor plans to develop a regression model for the appraisal value (in thousands of dollars) of property in her city (Y) based on 5 numerical variables: Y = Bo + B1X1 + B2X2 + B3X3 + B4X4 + B5X5 + = The investor would like to test whether or not the model has any significance. That is, she would like to test the hypotheses: Ho: B1 = B2 - B3 - B4 - Bs - 0 HA: not all B, are zero A sample of 30 items are drawn and the data is used to create the prediction equation: y = bo + bjx1 + b2x2 + 03x3 + b4X4 + 05x5 The regression sum of squares (SSR) is calculated to be 478.0 and the error sum of squares (SSE) is calculated to be 503.2. An F test is conducted to test the above hypotheses. a) Calculate the test statistic (F) for this test. Give your answer to 2 decimal places. F : b) With a 99% level of confidence, the investor reject the null hypothesis