a. Compute the coefficient of determination (R2) for the regression model in Exercise 12.56.
b. Obtain another regression model with number of employees as the only independent variable. Compute the coefficient of determination for this model.
c. Test the null hypothesis that adding profit margin and information processing cost does not yield any additional predictive value given the information about number of employees. Use α = .10. What can you conclude from this test?
In exercise

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