Question: Consider Example 12.3 on page 447. Compare the two competing models. First order: yi = 0 + 1x1i + 2x2i + i, Second order: yi

Consider Example 12.3 on page 447. Compare the two competing models.

First order: yi = β0 + β1x1i + β2x2i + i, Second order: yi = β0 + β1x1i + β2x2i

+ β11x2 1i + β22x2 2i + β12x1ix2i + i.

Use R2 adj in your comparison. Test H0 : β11 = β22 =

β12 = 0. In addition, use the C.V. discussed in Exercise 12.40.

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