Reading 11- LOS I (Part 1): : Q1 style, class

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LOS i, (Part 1): Describe the use of analysis of variance (ANOVA) in regression analysis.

1．nsider the following analysis of variance (ANOVA) table:

Source	Sum of squares	Degrees of freedom	Mean square
Regression	500	1	500
Error	750	50	15
Total	1,250	51

The R² and the F-statistic are, respectively:

A)   R² = 0.40 and F = 33.333.

B)   R² = 0.67 and F = 0.971.

C)   R² = 0.40 and F = 0.971.

D)   R² = 0.67 and F = 33.333.

2．nsider the following analysis of variance (ANOVA) table:

Source	Sum of squares	Degrees of freedom	Mean square
Regression	200	1	200
Error	400	40	10
Total	600	41

The R² and the F-statistic are, respectively:

A)   R² = 50% and F = 2.0.

B)   R² = 33% and F = 20.0.

C)   R² = 50% and F = 0.952.

D)   R² = 33% and F = 2.0.

cfaedu

LOS i, (Part 1): Describe the use of analysis of variance (ANOVA) in regression analysis.

1．nsider the following analysis of variance (ANOVA) table:

Source	Sum of squares	Degrees of freedom	Mean square
Regression	500	1	500
Error	750	50	15
Total	1,250	51

The R² and the F-statistic are, respectively:

A)   R² = 0.40 and F = 33.333.

B)   R² = 0.67 and F = 0.971.

C)   R² = 0.40 and F = 0.971.

D)   R² = 0.67 and F = 33.333.

The correct answer was A)

R² = 500 / 1,250 = 0.40. The F-statistic is 500 / 15 = 33.33.

2．nsider the following analysis of variance (ANOVA) table:

Source	Sum of squares	Degrees of freedom	Mean square
Regression	200	1	200
Error	400	40	10
Total	600	41

The R² and the F-statistic are, respectively:

A)   R² = 50% and F = 2.0.

B)   R² = 33% and F = 20.0.

C)   R² = 50% and F = 0.952.

D)   R² = 33% and F = 2.0.

The correct answer was B)

R² = 200 / 600 = 0.333. The F-statistic is 200 / 10 = 20.