Test whether or not the addition of 3 variables to a model will be statistically significant.
Observations = sample of 25
Y hat = 62.42 - 1.836X1 + 25.62X2
SSE = 725
The equation with additional 3 variables.
Y hat = 59.23 - 1.762X1 + 25.638X2 + 16.237X3 + 15.297X4 - 18.723X5
SSE = 520
Test the null hypothesis that the three variables X3, X4, and X5 do not belong in the model at the five percent level of significance.
F = [(SSE partial - SSE full)/(number of added variables)] / [SSE full/(number of observations - number of variables in full regression-1)
The solution tests whether or not the addition of 3 variables to a model will be statistically significant.