A company that manufactures computer chips wants to use a mu

A company that manufactures computer chips wants to use a multiple regression model to study the effect that several variables x1, x2, ? , x5 have on the total daily production cost (in 1000?s of dollars). If a regression model is estimated using 179 observations on these variables, fill in the blanks in the following analysis of variance (ANOVA) table that is associated with this Model. Do all calculations to at least three decimal places.

Solution

Here i=5 (there are 5 independent variables)

and n=179 (given)

Source of variation Degree of freedom Sum of Squares Mean Squares F Statistic
Regression i=5 198.8*5=994 49.7*4=198.8 49.7
Error 178-5=173 4*173=692 4
Total n-1=178 994+692=1686
 A company that manufactures computer chips wants to use a multiple regression model to study the effect that several variables x1, x2, ? , x5 have on the total

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