A researcher is trying to decide whether or not to add another variable to his model. He has estimated the following model from a sample of 28 observations:
$\widehat { y }$ = 23.62 + 18.86x₁ + 24.72x₂

SSE = 1,425 SSR = 1,326

He has also estimated the model with an additional variable x₃. The results are
$\widehat { y }$ = 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃

SSE = 1,300 SSR = 1,451

What advice would you give this researcher? Use a .05 level of significance.

Question

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

\widehat { y }

= 23.62 + 18.86x₁ + 24.72x₂

SSE = 1,425 SSR = 1,326

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

\widehat { y }

= 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃

SSE = 1,300 SSR = 1,451

What advice would you give this researcher? Use a .05 level of significance.

Quizplus · Accepted Answer

The Answer of A researcher is trying to decide whether or not to add another variable to his model. He has estimated the following model from a sample of 28 observations: $\widehat { y }$ = 23.62 + 18.86x₁ + 24.72x₂ SSE = 1,425 SSR = 1,326 He has also estimated the model with an additional variable x₃. The results are $\widehat { y }$ = 25.32 + 15.29x₁ + 7.63x₂ + 12.72x₃ SSE = 1,300 SSR = 1,451 What advice would you give this researcher? Use a .05 level of significance.

A Researcher Is Trying to Decide Whether or Not to Add