Exhibit 16

question 47

Essay

Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.If you impose the restrictions β₂ = β₃ = 0 on the model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε,what will be the sum of the squared errors (SSE_R)computed for the restricted model?

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