When a Regression Model Was Developed Relating Sales (Y) of a Company

question 10

Essay

When a regression model was developed relating sales (y) of a company to its product's price (x₁), the SSE was determined to be 495. A second regression model relating sales (y) to product's price (x₁) and competitor's product price (x₂) resulted in an SSE of 396. At α = .05, determine if the competitor's product price contributed significantly to the model. The sample size for both models was 33.

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Definitions:

Stirrup

A bone in the middle ear that transmits sound vibrations to the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, also known as the tympanic membrane.

External Ear

The outer portion of the ear, consisting of the pinna and the ear canal, which helps direct sound waves into the ear.

Middle Ear

The part of the ear located between the eardrum and the inner ear that contains three bones which amplify sound.