(A)Estimate a Multiple Regression Model That Includes the Two Given

question 12

Essay

(A)Estimate a multiple regression model that includes the two given explanatory variables.Assess this set of explanatory variables with an F-test,and report a p-value.
(B)Conduct a partial F-test to decide whether it is worthwhile to add second-order terms (i.e., )to the multiple regression equation estimated in Question 114.Employ a 5% significance level in conducting this hypothesis test.
(C)Identify and interpret the percentage of variance explained for the model in (A).
(D)Identify and interpret the percentage of variance explained for the model in (B).
(E)Which regression equation is the most appropriate one for modeling the quality of the given product? Bear in mind that a good statistical model is usually parsimonious.

---

Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the proportion of any additional income that will be taken in taxes.

Average Tax Rate

A calculation resulting from dividing an individual's or entity's total tax payments by their total taxable income, indicating the portion of income paid in taxes.

Federal Government

The national government of the United States, which governs at the country level, consisting of the legislative, executive, and judicial branches.

Franklin Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for his New Deal programs during the Great Depression.