You are interested in examining the factors that determine the average length of

Question

You are interested in examining the factors that determine the average length of stay in a hospital across provinces. You collect data on the following variables:
Y = province-wide average hospital stay
X2 = median provincial income
X3 = 1 if the province is one of the Atlantic provinces, 0 otherwise
X4 = 1 if the province is in Quebec or Ontario, 0 otherwise
X5 = 1 if the province is in the Prairies, 0 otherwise
X6 = 1 if the province is BC or Alberta, 0 otherwise

You run the following regression Y = 1 + 2X2 + 3X3 + 4X4 + 5X5. How would you test in a statistically significant manner whether the average length of stay depends upon the province in which you live?

A. Do an F test of Ho: 3 = 0, 4 = 0, 5 = 0 versus H1: at least one j 0.

B. Do an F test of Ho: 3 = 0, 4 = 0, 5 = 0 versus H1: all of the j 0.

C. Do a t test of Ho: 3 = 0 versus H1: 3 0.

D. Do a t test of Ho: 4 = 0, 5 = 0 versus H1: at least one j 0.

Explanation / Answer

The correct answer would be as shown below: -

A. Do an F test of Ho: 3 = 0, 4 = 0, 5 = 0 versus H1: at least one j 0.

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