Compute the f value

4.16. For Example 4.3, compute the F value. If that F value is significant, what does that mean? Example 4.3. The Demand for Alcoholic Beverages in the United Kingdom To explain the demand for alcoholic beverages in the United Kingdom, T. McGuinness estimated the following regression based on annual data for 20 years: Y = - 0.014 - 0.354X2 + 0.0018Xy + 0.657Xy + 0.0059X5/ se = (0.012) (0.2688) (0.0005) (0.266) (0.0034) (4.61) = (-1.16) (1.32) (3.39) (2.47) (1.73) R2 0.689 where Y = the annual change in pure alcohol consumption per adult X2 = the annual change in the real price index of alcoholic drinks X3 = the annual change in the real disposable income per person the annual change in the number of licensed premises XA= the adult population Xs = the annual change in real advertising expenditure on alcoholic drinks per adult Theory would suggest that all but the variable X2 will be positively related to Y. This is borne out by the results, although not all coefficients are individually statistically significant. For 15 d.f. (Why?), the 5% critical / value is 1.753 (one-tail) and 2.131 (two-tail). Consider the coefficient of Xs, the change in advertising expenditure, Since the advertising expenditure and the demand for alcoholic beverages are expected to be positive (otherwise, it is bad news for the advertising industry), we can entertain the hypothesis that Ho: B5 = 0 vs. H1 : By > 0 and therefore use the one-tail / test. The computed * value of 1.73 is very close to being significant at the 5% level. It is left as an exercise for you to compute the F value for this example to test the hypothesis that all partial slope coefficients are simultaneously equal to zero