. The Canada Small Business Financing Program (CSBFP) seeks toincrease the availability of loans for establishing and improving small businesses. A survey was performed to better understand the experiences of small businesses when seeking loans and the extent to which they are aware of and satisfied with the CSBFP.16 A total of 503 survey interviews were completed. To understand the drivers of overall satisfaction with the financing options available, a multiple regressionwas undertaken. The response variable was the subjectâ€™s overall satisfaction scored on a 5-point scale, where 1 means â€œvery dissatisfiedâ€ and 5 means â€œvery satisfied.â€The eight predictors were the perceived importance of certain factors when considering or obtaining loans, including the interest rate, service fees, and quality of service from lenders. These were also scored on a 5-point scale, with 1 meaning â€œnot importantat allâ€ and 5 meaning â€œvery important.â€
(a) What are the degrees of freedom for the F statistic of the model that contains all the predictors?
(b) The report states that the complete set of predictors has an R2 of 0.68. What percent of the variation in the response variable is
explained by these eight explanatory variables?
(c) The report also states that the model with just the quality of service received and the possibility of negotiating the terms of
financing explained 60% of the variation in the response variable. Test the hypothesis that the other six predictors do not help
predict satisfaction when these two predictors are already in the model.