We used a partial F-statistic to test the benefit of adding the collection of 20 dummy variables representing Merged Industry to this model. Why didn’t we use the same procedure to test the addition...

We used a partial F-statistic to test the benefit of adding the collection of 20 dummy variables representing Merged Industry to this model. Why didn’t we use the same procedure to test the addition of Originator? The answer is that we should, even though both coefficients for Originator are highly statistically significant. The R2 without Originator in the model is 0.1589.

a. State the specific null hypothesis that is tested if we use the partial F-statistic to test the effect of adding Originator to the model.^a

b. What is the appropriate value to use for kpartial?^b

c.  What is the value of the partial F-statistic?^c

d. Does the addition of Originator produce a statistically significant increase in the of the reduced model? Explain.^d