FRM-Regression analysis
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FRM-Regression analysis

Postby » Thu Apr 18, 2013 11:50 pm

A dependent variable is regressed against three independent variables across 25 observations. The regression sum of squares is 119.25, and the total sum of squares is 294.45. The following are the estimated coefficient values and standard errors of the coefficients.



Standard error










What is the p-value for the test of the hypothesis that all three of the coefficients are equal to zero?

A) lower than 0.025.
B) Between 0.025 and 0.05.
C) Between 0.05 and 0.10.
D) Greater than 0.10.

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i dont know how to answer this question. Can anybody please solve this

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FRM-Regression analysis

Postby vnraghuveer » Mon Apr 22, 2013 10:46 am

Hi anbu,

The t-stat values for the three coefficients are calculated by using the formula
t-stat= (coefficient-0)/Std error.
So the t-stat values are 1.71, 2.07 and 2.2 respectively which correspond to p-values of 0.05, 0.03 and 0.025 respectively.(Look at t-distribution table with 23 degrees of freedom).
So the p values lie between 0.025 and 0.05 Option B

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