When a Regression Model Was Developed Relating Sales (Y) of a Company

Essay

When a regression model was developed relating sales (Y) of a company to its product's price (X₁), the SSE was determined to be 495. A second regression model relating sales (Y) to product's price (X₁) and competitor's product price (X₂) resulted in an SSE of 396. At $\alpha$ = 0.05, determine if the competitor's product's price contributed significantly to the model. The sample size for both models was 33.