We want to first test each coefficient,  where k=1,2,...,p-1, within the model, in order to determine if that individual parameter should be dropped from the model.

Hypothesis Tests:

    --> can be dropped from the model

    --> cannot be dropped from the model

Given a Model:

   

For Testing Each :

    --> same t testing as simple linear regression

     

= area in each tail         

 

 

 


Now let's look at an example.

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