Suppose you fit the first-order model y = 0 + 1x1 + 2x2 + 3x3 + 4x4

Question:

Suppose you fit the first-order model
y = β0 + β1x1 + β2x2 + β3x3 + β4x4 + β5x5 + Ɛ
to n = 30 data points and obtain
SSE = .33 R2 = .92
a. Do the values of SSE and R2 suggest that the model provides a good fit to the data? Explain.
b. Is the model of any use in predicting y? Test the null hypothesis H0: β1 = β2 = . . . β5 = 0 against the alternative hypothesis Hα: At least one of the parameters β1, β2,. . . , β5 is nonzero. Use α = .05.