Math Problem Statement

Description: The following is an accessible version of the Python script output for OLS Regression. In the normal output, the items are arranged in two columns. Here, items are listed in one column for easier use. Each item has a label. For example, the label “Model” comes before the item “OLS”. Items follow the same order as the normal Python script output.   OLS Regression Results   Dependent Variable: Quality

Model: OLS

Method: Least Squares

Date: Sun, 18 Aug 2019

Time: 11:39:31

No. Observations: 18

Df Residuals: 15

Df Model: 2

Covariance Type: nonrubust

R-squared: 0.978

Adj. R-squared: 0.975

F-statistic: 332.2

Prob (F-statistc): 3.80 e -13

Log-Likelihood: -21.142

AIC: 48.28

BIC: 50.95   ****  Coef

Std err

T

P>|t|

[0.025

0.975]

Intercept

0.5382

0.473

1.137

0.273

-0.471

1.547

Speed

-1.9046

0.176

-10.834

0.000

-2.279

-1.530

Angle

4.0280

0.178

22.574

0.000

3.648

4.408   Omnibus: 4.358

Prob(Omnibus): 0.113

Skew: 0.082

Kurtosis: 1.637

Durbin-Watson: 2.121

Jarque-Bera (JB): 1.414

Prob(JB): 0.493

Cond. No: 14.4

 The statsmodels ols() method is used on a cars dataset to fit a multiple regression model using Quality as the response variable. Speed and Angle are used as predictor variables. The general form of this model is:

If the level of significance, alpha, is 0.05, based on the output shown, what is the correct interpretation of the overall F-test? (Hint: Prob (F-statistic) is the P-value). Select one.

the answers: Null Hypothesis  Alternative Hypothesis  P-value = 332.2 Since the P-value is greater than the level of significance, alpha, do not reject the null hypothesis. Conclude that all beta values are zero. Therefore, the model is not statistically significant.

Null Hypothesis  Alternative Hypothesis  P-value = 3.80e-13 Since the P-value is less than the level of significance, alpha, reject the null hypothesis. Conclude that at least one beta value is non-zero. Therefore, the model is statistically significant.

Null Hypothesis  Alternative Hypothesis  P-value = 3.80e-13 Since the P-value is less than the level of significance, alpha, do not reject the null hypothesis. Conclude that all beta values are zero. Therefore, the model is not statistically significant.

Null Hypothesis  Alternative Hypothesis  P-value = 332.2 Since the P-value is greater than the level of significance, alpha, reject the null hypothesis. Conclude that at least one beta value is non-zero. Therefore, the model is statistically significant.

Solution

The correct interpretation of the overall F-test, based on the output provided, is:

Null Hypothesis: All beta values are zero (i.e., none of the predictor variables have any effect on the response variable).
Alternative Hypothesis: At least one beta value is non-zero (i.e., at least one predictor variable has an effect on the response variable).

Since the P-value = 3.80e-13 (which is much smaller than the significance level α = 0.05), we reject the null hypothesis. This means that we conclude that at least one beta value is non-zero, and the model is statistically significant.

Thus, the correct answer is:

Null Hypothesis
Alternative Hypothesis
P-value = 3.80e-13
Since the P-value is less than the level of significance, alpha, reject the null hypothesis. Conclude that at least one beta value is non-zero. Therefore, the model is statistically significant.


Would you like more details on any part of this analysis or further clarification? Here are 5 follow-up questions that might be useful:

  1. How do I interpret the individual P-values of the predictors (Speed and Angle)?
  2. What does the R-squared value indicate about the model's fit?
  3. How can I perform a hypothesis test on the individual coefficients?
  4. What does the "Durbin-Watson" statistic tell me about the model?
  5. How can I improve the model if the assumptions are violated?

Tip: The F-test assesses whether the overall regression model is useful, whereas individual hypothesis tests (like t-tests) help evaluate the significance of each predictor in the model.

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Math Problem Analysis

Mathematical Concepts

Statistical Inference
Hypothesis Testing
Linear Regression

Formulas

F-statistic formula: F = (SSR / k) / (SSE / (n - k - 1))
P-value comparison to significance level alpha

Theorems

Null Hypothesis Testing
P-value Interpretation
F-distribution Properties

Suitable Grade Level

Undergraduate Level (Statistics or Data Science)