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

question 59

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 $\alpha$ = 0.05, determine if the competitor's product's price contributed significantly to the model. The sample size for both models was 33.

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Definitions:

Optic Chiasm

Point of crossing of the optic tracts.

Sclera

The white outer layer of the eyeball, providing protection and form to the eye.

Vitreous Humor

Transparent, jelly-like material that fills the space between the lens and the retina.

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs, such as the lens of the eye, by attaching them to surrounding structures.