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Good afternoon, everyone!

To reconcile on how we arrived with our ANOVA summary results and


interpretations, below are the steps in testing hypothesis for a significant
regression model.

Honestly, I thought there is only one method to test hypothesis, which is the
usage of F value and F distribution table. And with this forum, it made clear to me
that there is still another method that can be used to test hypothesis, which is the
usage of p-value (which the group 6 used). I am sorry for my unawareness.


Steps in Hypothesis Test for a Significant Regression Model:
1. Specify null and alternative hypotheses:
H
0
:
1
= 0
H
1
:
1
0
2. Select the level of significance (). Common values are 0.01 and 0.05.
3. Calculate the value of the test statistic using the formula
F=MSR/MSE
4. Make a decision using one of the following methods:
(a) Reject the null hypothesis if the test statistic is greater than the F value
from the F distribution table. Otherwise, do not reject the null hypothesis:
Reject if F
calculated
> F
,df1,df2

df
1
= k
df
2
= n-k-1
(b) Reject the null hypothesis if the observed significance level, or p-
value, is less than the level of significance (). Otherwise, do not reject
the null hypothesis:
p-value = P(F > calculated test statistic)
Reject if p-value <


Thank you, Group 6!

-Isko

(Source: Render, Stair, Hanna, Quantitative Analysis for Management 11
th
ed., p.
126.)

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