Hi Livia, You seem to have mixed up the residual error with the R^2, which is just over 0.02. The bottom line on your summary table says that the obtained F statistic was equal to 1894 (this has been truncated to four significant places). The probability of obtaining that value with your data given the F distribution for 4 numerator and 342199 denominator degrees of freedom is very small, but not less than 0. The notation <2.2e-16 can be roughly translated in English as "about as close to zero as this function can calculate". You should note that with that many observations, a significant result is almost guaranteed, but the linear model explains almost none of the variance in prices.
Jim On Tue, May 19, 2015 at 6:16 PM, Livia Maria Vestergaard <lves...@student.sdu.dk> wrote: > Hi guys > > I have a statistical question to an analyse I ran in R. It is a dummy > variable model with the 5 regions of Denmark as 4 independent dummy > variables and price as the dependent variable: > > price = 10.325 - 0.176*Sjaeland - 0.368 * NJylland - 0.230*MJylland - 0.120* > Syddanmark > > I understand the R^2 = 0.7348 - that it shows the explanatory force of the > model (between 0 and 1) > My question is simply how to interpret the standard error = 0.7348 on 342199 > degrees of freedom? How is it calculated when the model is a dummy variable > model. And what does it mean that the F-statistic says that there are 1894 > on 4 and 342199 DF (degrees if freedom?) with a p-value < 0? > > I have been searching for hours - and can't quite figure out how R reached > the numbers and how to interpret the output of standard error and the p-value > of the dummy model. > > I really hope you can help :) > > Best Livia > ______________________________________________ > R-help@r-project.org mailing list -- To UNSUBSCRIBE and more, see > https://stat.ethz.ch/mailman/listinfo/r-help > PLEASE do read the posting guide http://www.R-project.org/posting-guide.html > and provide commented, minimal, self-contained, reproducible code. ______________________________________________ R-help@r-project.org mailing list -- To UNSUBSCRIBE and more, see https://stat.ethz.ch/mailman/listinfo/r-help PLEASE do read the posting guide http://www.R-project.org/posting-guide.html and provide commented, minimal, self-contained, reproducible code.
