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Thirty Employed Single Individuals Were Randomly Selected to Examine the Relationship

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Thirty employed single individuals were randomly selected to examine the relationship between their age (Age) and their credit card debt (Debt) expressed as a percentage of their annual income. Three polynomial models were applied and the following table summarizes Excel's regression results. Thirty employed single individuals were randomly selected to examine the relationship between their age (Age) and their credit card debt (Debt) expressed as a percentage of their annual income. Three polynomial models were applied and the following table summarizes Excel's regression results. If you impose the restrictions β<sub>2</sub> = β<sub>3</sub> = 0 on the model Debt = β<sub>0</sub> + β<sub>1</sub>Age + β<sub>2</sub>Age<sup>2 </sup><sup>+ β</sup><sub>3</sub>Age<sup>3 </sup>+ ε, what will be the sum of the squared errors (SSE<sub>R</sub>) computed for the restricted model? If you impose the restrictions β2 = β3 = 0 on the model Debt = β0 + β1Age + β2Age2 + β3Age3 + ε, what will be the sum of the squared errors (SSER) computed for the restricted model?

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