A Researcher Is Trying to Decide Whether or Not to Add

question 31

Short Answer

A researcher is trying to decide whether or not to add another variable to his regression model. He has estimated the following equation for the model from a sample of 28 observations. = 23.62 + 18.86x₁ + 24.72x₂
SSE = 1425
SSR = 1320
​
He has also estimated the model with an additional variable x₃. The results are: = 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃
SSE = 1350
SSR = 1465
​
What advice would you give this researcher? Use a .10 level of significance.

---

Definitions:

Personnel Management

A new type of management function, grew from the recognition that human resources needed to be managed.

Government Regulations

The laws and rules established by governmental bodies that dictate how businesses can operate, aimed at protecting consumers, employees, and the environment.

Behavioral Issues

Behavioral issues refer to actions or patterns of conduct in individuals that are disruptive, harmful, or outside of societal norms.

Knowledge Workers

Individuals whose primary job involves handling or using information and knowledge, often requiring analytical skills and expertise in specific fields.