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We want to test whether or not the addition of 3 variables to a model will be st

ID: 3350479 • Letter: W

Question

We want to test whether or not the addition of 3 variables to a model will be statistically significant. You are given the following information based on a sample of 25 observations. Y-6242-1.836%! + 25.62x, SSE = 725 SSR = 526 The equation was also estimated including the 3 variables. The results are fe 59.23-1.762x,+25638X2+16.23Th+15.297x,18.723x, SSE=520 SSR=731 Refer to Exhibit 16-6. To test which model has significantly a lower SSE, the following null hypothesis should be tested: Ho : 1=2=0 Ho : 1=0

Explanation / Answer

Degree of freedom associated with SSE =33 -3 =30

So,the answer is the last choice

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