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The F–test
The significance of the regression results can be tested by using the F- statistics. The F-statistics is a ratio which compares the explained sum of squares and the unexplained sum of squares.Therefore, F = mean sum of squares due to regression Mean sum of squares due to residualFor calculation purposes:F = r2 /K (1 – r2)/n-k-1F statistics can then be used to test the hypothesis that the relationship between the dependent variables and all the independent variables is not significant.
POINT ESTIMATE OF PROBABILITIES This approach requires a number of different values for each of the uncertain variables to be selected. These might be values that are reasonabl
when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?
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