Question: 12.41 Consider Example 12.3 on page 467. Compare the two competing models. First order: yi = 0 + 1x1i + 2x2i + i , Second

12.41 Consider Example 12.3 on page 467. Compare the two competing models.

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

+ β11x21 i + β22x22 i + 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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