Multiple Regression with Food Truck Case | Assignment

Running head: MULTIPLE REGRESSION WITH FOOD TRUCK CASE
Multiple Regression with Food Truck Case
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MULTIPLE REGRESSION WITH FOOD TRUCH CASE1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................3
Question 4........................................................................................................................................5
References........................................................................................................................................7

MULTIPLE REGRESSION WITH FOOD TRUCH CASE2
Question 1
Table 1: Comparison of F statistics and p value for the two regression
Regression model F-Statistics P - Value
First Model 20.959 0.000
Second Model 27.309 0.000
For a regression model, F –tests are used to examine overall significance of the model.
For the first model the obtained value of F statistics is 20.959. The critical value of F statistics
with (5, 14) degrees of freedom and 5% significance level is 2.9582. The computed F value is
greater than the critical F value. This suggests the null hypothesis of no overall significance of
the model is rejected. This implies that the overall model is statistically significant. For the
second model, the value of F statistics is 27.309. The value of critical F statistics with (3, 16) at
the 5% significance level is 3.2389. The computed F for the second model exceeds the critical F
meaning rejection of null hypothesis of no overall significance of the model (Schroeder, Sjoquist
and Stephan). The second model therefore is also statistically significant. The p values of the F-
tests also give the similar result. The significant p value corresponding to F statistics is 0.000.
The p value is less than the significance level suggesting rejection of null hypothesis that all the
coefficients are zero. This in turn means that both the model is statistically significant.