A multiple regression model with 3 independent variables and

A multiple regression model with 3 independent variables and 16 observations produced thefollowing analysis of variance table.

After some consideration, the analyst decided to add two new independent variables to the multipleregression model. As a result of this change, the unexplained variation (SSE) decreased by 5.Complete the new analysis of variance table after the addition of the two new independentvariables. Did the two newly added variables improve the model?

Solution

Since the unexplained variation has been decreased by 5 in the second model,so the second model is an improved version of the first model,i.e. the two newly added variables improve the model.