
100 BUSINESS APPLICATIONS OF MULTIPLE REGRESSION
Testing the Significance of the
Individual Variables in the Model
So far, we have discussed our regression models in general terms, and we
have only been concerned with whether the overall model is significant—
that is, if it passes the F- test. As was discussed previously, passing the
F- test only tells us that the overall model is significant, and if there are
collinear variables, then one of the variables is significant, though not that
all of them are significant. In other words, once one of these collinear
variables is dropped out, at least one variable will be significant. We now ...