It is desired to build a regression model to predict the sales price of a single family home, based on the size of the hotise and the neighborhood the home is located in. The goal is to compare the prices of homes that are located in two different neighborhoods. The following complete 2 nd-order model is proposed: E(y) = . What hypothesis should be tested to determine if the quadratic terms are necessary to predict the sales price of a home?
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Correct Answer:
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