Thirty-four observations of a dependent variable and two ...

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Thirty-four observations of a dependent variable and two independent variables resulted in an SSE of 300 . When a third independent variable was added to the model, the SSE was reduced to 250 . Using  = .05, determine whether or not the third independent variable contributes significantly to the model.

Question 2

A regression analysis involving 45 observations relating a dependent variable and two independent variables resulted in the following information. y = .408 + 1.3387x1 + 2x2 The SSE for the above model is 49 . When two other independent variables were added to the model, the following information was provided. y = 1.2 + 3x1 + 12x2 + 4x3 + 8x4 This model's SSE is 40. At a .05 level of significance, test to determine if the two added independent variables contribute significantly to the model.

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Answer to Question 1

. F = 6 > critical F = 4.17; reject H0; the added variable contributes significantly.

Answer to Question 2

. F = 4.5; p-value is between .01 and .025; reject H0; the two added variables contribute significantly.