Chapter 13: Problem 3
In a regression analysis involving 30 observations, the following estimated regression equation was obtained. \\[\hat{y}=17.6+3.8 x_{1}-2.3 x_{2}+7.6 x_{3}+2.7 x_{4}\\] a. Interpret \(b_{1}, b_{2}, b_{3},\) and \(b_{4}\) in this estimated regression equation. b. Estimate \(y\) when \(x_{1}=10, x_{2}=5, x_{3}=1,\) and \(x_{4}=2\)
Short Answer
Step by step solution
Interpret the Coefficient \(b_1\)
Interpret the Coefficient \(b_2\)
Interpret the Coefficient \(b_3\)
Interpret the Coefficient \(b_4\)
Plug in Values to Estimate \(y\)
Calculate Each Term
Sum the Terms to Find \(y\)
Final Answer
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Regression Coefficients
For the given regression equation: \[\hat{y}=17.6+3.8 x_{1}-2.3 x_{2}+7.6 x_{3}+2.7 x_{4}\] we have four coefficients, each corresponding to one of the independent variables \(x_{1}\), \(x_{2}\), \(x_{3}\), and \(x_{4}\).
- \(b_1 = 3.8\): For each additional unit of \(x_1\), the predicted \(y\) increases by 3.8 units.
- \(b_2 = -2.3\): For each additional unit of \(x_2\), the predicted \(y\) decreases by 2.3 units, indicating an inverse relationship.
- \(b_3 = 7.6\): For each additional unit of \(x_3\), the predicted \(y\) increases by 7.6 units.
- \(b_4 = 2.7\): For each additional unit of \(x_4\), the predicted \(y\) increases by 2.7 units.
Interpretation of Coefficients
The **coefficient \(b_1 = 3.8\)** suggests that, with an increase in \(x_1\) by one unit, the dependent variable \(y\) is expected to rise by 3.8 units. All other variables remain unchanged during this interpretation.
The **coefficient \(b_2 = -2.3\)** indicates a decrease of 2.3 units in \(y\) for each unit increment in \(x_2\). This negative coefficient shows an inverse relationship between \(x_2\) and \(y\).
When considering **\(b_3 = 7.6\)**, a one-unit increase in \(x_3\) leads to a rise in \(y\) by 7.6 units. The correlation here is positive, suggesting that as \(x_3\) increases, so does \(y\).
Finally, **\(b_4 = 2.7\)** implies that \(y\) will increase by 2.7 units with each one-unit rise in \(x_4\). The positive sign reflects a direct positive influence of \(x_4\) on \(y\).
Predicted Values
To find the predicted value of \(y\), substitute these values:
\[ y = 17.6 + 3.8(10) - 2.3(5) + 7.6(1) + 2.7(2) \]
Calculate each component separately:
- \(3.8 \times 10 = 38.0\)
- \(-2.3 \times 5 = -11.5\)
- \(7.6 \times 1 = 7.6\)
- \(2.7 \times 2 = 5.4\)
Add these results to the intercept, 17.6, to find the predicted \(y\):
\[ y = 17.6 + 38.0 - 11.5 + 7.6 + 5.4 = 57.1 \]
Thus, the estimated value of \(y\) given the specified \(x\) values is 57.1. This process reveals how the regression model predicts \(y\) using specific input values.