Re: ecotrix

Posted by happy on Jun 14, 2017; 3:28am
URL: http://discussion-forum.276.s1.nabble.com/ecotrix-tp7605527p7605532.html

R^2 = 0 means the no explanatory variable is able to explain the variation in the Explanatory variable, which is same as testing for the multiple linear restriction that is all the slope coefficient are 0, under the alternative hypothesis that at least 1 slope coefficient is non 0.

So we can use the F-test to check the increase in R^2 from the restricted model (in which R^2 = 0 because all slope coefficient are 0) to the unrestricted model is statistically significant or not.