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A data set consisting of 7 observations of a dependent variable y and two independent variables x1 and x2 was used in a regression analysis. Using (x1) as the only independent variable, the following function is provided. = 0.408 + 1.338x1
The SSE for the above model is 39.535.
Using both x1 and x2 as independent variables yields the following function. = 0.805 + 0.498x1 - 0.477x2
The SSE for this latter function is 1.015.
Use an F test and determine if x2 contributes significantly to the model. Let = 0.05.
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