When a regression model was developed relating sales (y) of a ...

[moongchi]

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's price (x2) resulted in an SSE of 396 . At  = .05, determine if the competitor's product's price contributed significantly to the model. The sample size for both models was 33.

Question 2

A regression model with one independent variable, x1, resulted in an SSE of 50 . When a second independent variable, x2, was added to the model, the SSE was reduced to 40 . At  = .05, determine if x2 contributes significantly to the model. The sample size for both models was 30.

[Joc]

Answer to Question 1

. F = 7.5 > critical F = 4.17; reject H0; competitor's product's price contributed significantly to the model.

Answer to Question 2

. F = 6.75 > critical F = 4.21; reject H0; x2 contributes significantly.

[moongchi]

Great answer, keep it coming

[nathang24]

Thanks for the timely response, appreciate it