A researcher is trying to decide whether or not to add another variable to his regression model. He has estimated the following equation for the model from a sample of 28 observations. = 23.62 + 18.86x₁ + 24.72x₂
SSE = 1425
SSR = 1320

He has also estimated the model with an additional variable x₃. The results are: = 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃
SSE = 1350
SSR = 1465

What advice would you give this researcher? Use a .10 level of significance.

Question

A researcher is trying to decide whether or not to add another variable to his regression model. He has estimated the following equation for the model from a sample of 28 observations.

= 23.62 + 18.86x₁ + 24.72x₂
SSE = 1425
SSR = 1320

He has also estimated the model with an additional variable x₃. The results are:

= 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃
SSE = 1350
SSR = 1465

What advice would you give this researcher? Use a .10 level of significance.

Quizplus · Accepted Answer

The Answer of A researcher is trying to decide whether or not to add another variable to his regression model. He has estimated the following equation for the model from a sample of 28 observations. = 23.62 + 18.86x₁ + 24.72x₂ SSE = 1425 SSR = 1320 He has also estimated the model with an additional variable x₃. The results are: = 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃ SSE = 1350 SSR = 1465 What advice would you give this researcher? Use a .10 level of significance.

A Researcher Is Trying to Decide Whether or Not to Add