Question
Suppose you estimate a Simple linear regression with the number of homes for sales as the dependent variable and the unemployment rate as independent variable.
Suppose you estimate a Simple linear regression with the number of homes for sales as the dependent variable and the unemployment rate as independent variable. The unemployment rate is a percentage in decimal form. From the regression result, you can the coefficient on the unemployment rate is -1,013.2 with p-value of 0.0264. Furthermore, you get the F-statistic is 4.928 with a p-value of 0.0264. At a level of significance of 5%, what does the F- test say about the result of the linear regression?
a) The result of the F-test for this linear regression suggest that the coefficient on unemployment rate is likely equal to 0
b) The result of the F-test for this linear regression suggest that the coefficient on unemployment rate must be positive
c) The result of the F-test for this linear regression suggest that the coefficient on unemployment rate is different from 0
d) There isn't enough information to determine a conclusion
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