Business Statistics for Competitive Advantage with Excel 2010 by Cynthia Fraser
Author:Cynthia Fraser
Language: eng
Format: epub
Publisher: Springer New York, New York, NY
8.7 Partial F Tests the Significance of Changes in Model Power
Can horsepower, cylinders, and passengers be eliminated without loss of explanatory and predictive power? Multicollinearity is reduced when we remove variables, increasing the certainty of parameter estimates for variables left in the model. With this small change in R Square (less than 1%), we do not need to test the significance of the change in R Square. When R Square does change by more than 1%, we use a Partial F test to assess the significance of the decline. The Partial F tests the hypothesis that the explanatory power of the partial model equals that of the full model:
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