A A sociologist estimates the regression relating Poverty () to Education (x1). The estimated regression equation is: y = 71.68 - 0.69x1; n = 39; SSE = 152. In an attempt to improve the results, he adds two more explanatory variables: Median Income (x2, in $1,000s) and the Mortality Rate (x3, per 1,000 residents). The estimated regression equation is: û = = 59.80 - 0.44x1- 0.18x2 + 0.17x3; n 39; SSE = 60. a. Formulate the hypotheses to determine whether Median Income and the Mortality Rate are jointly significant in explaining Poverty. b. Calculate the value of the test statistic. c. At the 5% significance level, find the approximate value of the critical value(s). d. What is the conclusion to the test? =
