ANOVA is a test use to measure the significance of the difference in the means of various groups. The F distribution is a significant test in ANOVA. The significance of the F distribution is brought about by the basic assumption made by an analyst when performing ANOVA. The principle assumption is that the populations have equal variances. The F distribution helps the analyst test the assumption (Goos & Meintrup, 2016). This is because during the calculation of the F ratio, the computation process also gives the result of the estimate of variance. One of the estimates of variance yielded through ...
Essays on Multicollinearity
2 samples on this topic
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Abstract
In this case, we illustrate the application of multiple regression in economics. We gather data on the unemployment rate (dependent variable) and three independent variables; GDP per capita, maximum weekly unemployment benefit and population estimate for 2015. The data is collected from 39 different states. Regression analysis results show that there is a positive association between the unemployment rate and GDP per capita and population estimate. The relationship between unemployment rate and maximum weekly benefits is inverse. The evaluation of the reliability of the first-order model shows that it has a small coefficient of determination. The first-order model is ...
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