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The Two Regressions Y = β0 + β1X1 + β2X2

Question 163

Multiple Choice

The two regressions Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε and Y = β0 + β1X1 + β2X2 + ε were run using a sample of 60 observations.If the SSE for the first regression is 1,688.4,what would you expect the SSE for the second regression be?


A) SSE = 1,688.4
B) SSE < 1,688.4
C) SSE ≥ 1,688.4
D) SSE < 688.4

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