Linear regression (OLS) Data : diamonds Response variable : price Explanatory variables: carat, clarity Null hyp.: the effect of x on price is zero Alt. hyp.: the effect of x on price is not zero coefficient std.error t.value p.value (Intercept) -6780.993 204.952 -33.086 < .001 *** carat 8438.030 51.101 165.125 < .001 *** clarity|SI2 2790.760 201.395 13.857 < .001 *** clarity|SI1 3608.531 200.508 17.997 < .001 *** clarity|VS2 4249.906 201.607 21.080 < .001 *** clarity|VS1 4461.956 204.592 21.809 < .001 *** clarity|VVS2 5109.476 210.207 24.307 < .001 *** clarity|VVS1 5027.669 214.251 23.466 < .001 *** clarity|IF 5265.170 233.658 22.534 < .001 *** Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 R-squared: 0.904, Adjusted R-squared: 0.904 F-statistic: 3530.024 df(8,2991), p.value < .001 Nr obs: 3,000