Pls help to explain that how to interpret the F-Statistic in regression model and also how to read following codes?
a. Prob (F-Statistic): 6.58e-10 (taken from the OLS regression result summary in same lesson)
Thanks for reaching out.
The number that you see ‘6.58e-10’ is written in scientific notation.
Usually, it is used to save space, while keeping the precision. For each such number you’d have a decimal number with 2 digits after the decimal dot (e.g. 6.58).
Then there is ‘e’. This shows we are dealing with scientific notation.
If the sign after ‘e’ is positive, we are dealing with powers of 10.
e+1 stands for 10^1 (ten to the power of 1).
e+2 stands for 10^2 (ten to the power of 2)
if the sign is negative, we are dealing with powers of 1/10.
e-1 stands for 10^(-1) (ten to the power of -1, or (1/10)^1)
e-5 stands for 10^(-5).
Based on this, we calculate the number from the lesson: 6.58e-10
It is equal to 6.58*10^(-10). In real numbers, the equivalent is 0.000000000658, which is approximately 0.
If something is unclear, you can check out this scientific notation calculator here: https://www.justintools.com/calculators/scientificnumber.php
Finally, to answer your question, the number from the lecture is interpreted as 0.000. Therefore, the result is significant and we deduce that the overall model is significant.
The 365 Team