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:

Diminishing Marginal Utility

The economic principle that as a person consumes more of a good, the incremental satisfaction gained from consuming additional units tends to decrease.

Ballet Slippers

Lightweight, flexible footwear specifically designed for ballet dancing.

Utility-Maximizing

The economic principle that individuals seek to get the greatest satisfaction or utility from their consumption choices, given their resources.

Peanut Butter

A food paste or spread made from ground, dry-roasted peanuts, often consumed as a source of protein and healthy fats.