I have no idea how to do forward selection procedure on this question. I am told that Fj = MSR(Xj)/MSE(Xj), but I do not see a MSE value or any hints on calculating it.

1. Agency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly agency revenues ( y ). She decided that three economic indicators for the area were potentially useful as independent variables, namely1 average weekly overtime hours of production workers in manufacturing (x1), number ofjob vacancies in manufacturing (x1), and index of help wanted advertising in newspapers (13 }. Monthly observations on agency revenues and the three independent variables were obtained for the past 25 months. The ANOVA table for the model y = :30 +,t3'11r1+y63;~c2 +,Bsx3 +5 is as follows: MS 1803.30 The consultant decided to screen the independent variables to determine the best set for predicting agency revenues. The regression sums of squares for all possible regression models were found to be as follows: Independent variables in the model SSR x1 2970.64 x2 3654.85 x3 3584.54 13:": 5123.30 xlyxs 5409.59 3:3,):3 3741.30 11,13.x3 5409.89 (a) Determine the subset of variables that is selected as best by the forward selection procedure using Fu 2 4.2 (toaddvan'able). Show your steps. (b) Determine the subset of variables that is selected as best by the backward elimination procedure \"using Ft; 2 4.1 (todeletevariable). Show your steps. m: (to >2 = Fa (c) Determine the subset of variables that is selected as best by the stepwise regression procedure using F0 2 4.2 {toadd} and Fu 2 4.1 (todelete). Show your steps