Null hypothesis model, Advanced Statistics

The Null Hypothesis - H0: Model does not fit the data i.e. all slopes are equal to zero β12 =...=βk=  0

The Alternative Hypothesis - H1:  Model does fit the data i.e. at least one slope is not equal to zero β1,β2,...,βk ≠ 0

Reject H0 if P-Value  ≤ α = 0.05 or F ≥ F?¹'?² = F4'¹5¹4  = 2.37781


2102_Null Hypothesis Model.png

Inverse Cumulative Distribution Function

F distribution with 4 DF in numerator and 1514 DF in denominator

P( X <= x )        x

       0.95      2.37781

Since F = 134.74 > 2.61078 (CV) we have sufficient evidence to reject H0 at the 5% significant level. Hence we conclude that the goodness of fit model does fit the model.  Also since the P-Value = 0.000 < 0.05 we reject H0 as it is highly significant.

Posted Date: 3/4/2013 4:53:34 AM | Location : United States

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