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

question 47

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:

Variable Costing

An accounting approach that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overheads.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Inventory Units

The individual items or products that are available for sale, in production, or in stock as part of a company's inventory.

Variable Costing

Variable costing is an accounting method that includes only variable production costs (materials, labor) in product costs, excluding fixed overhead.