A Regression Model Relating a Dependent Variable, Y, with One $\alpha$

question 42

Essay

A regression model relating a dependent variable, Y, with one independent variable, X₁, resulted in an SSE of 400. Another regression model with the same dependent variable, Y, and two independent variables, X₁ and X₂, resulted in an SSE of 320. At $\alpha$ = .05, determine if X₂ contributed significantly to the model. The sample size for both models was 20.

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Definitions:

Units of Output

The amount of product that a company produces in a given period.

Workers

Individuals engaged in any form of economic activity to earn a wage or salary, including both skilled and unskilled labor.

Total Cost

The complete cost of production that includes both variable and fixed costs.

Economics

The social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.