Can someone please help me with this problem, I do not know where to look for the answer on the chart. The chart is in the attachment folder.

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- Mar 15th 2009, 06:33 PMjax760Regression chart Analysis
Can someone please help me with this problem, I do not know where to look for the answer on the chart. The chart is in the attachment folder.

- Mar 16th 2009, 10:14 PMmatheagle
The test to kill all three variables in one step is the F test with test stat 12.82165585 and you compare it to an $\displaystyle F_{3,36}$.

The p-value is $\displaystyle P(F_{3,36}>12.82165585)$ and the printout gives that value as 7.48476E-06.

So as long as $\displaystyle \alpha>7.48476E-06$, you reject $\displaystyle H_0$ which is that all three variables can be dropped.

But with such a small p-value the conclusion is that we do indeed need at least one of those three terms to explain these people's salary.