Question

The following is the estimation results for a multiple linear regression model:

SUMMARY OUTPUT

            Regression Statistics

R-Square                                                       0.558

Regression Standard Error (S)                  863.100

Observations                                               35

                               Coeff        StdError          t-Stat   

Intercept               1283.000    352.000           3.65   

X₁                             25.228        8.631                      

X₂                               0.861        0.372          

Question:

1.

A. Write the fitted regression equation.

B. Write the estimated intercepts and slopes, associated with their corresponding standard errors.

C. Interpret each coefficient.

Answer 1

1.

A. Write the fitted regression equation.

y=1283.000+25.228x1+0.861x2

B. Write the estimated intercepts and slopes, associated with their corresponding standard errors

coeffcient of intercept- 1283.000 standard error 352.000           

coeffcient of x1=25.228 standard error fo x1=8.631                      

coeffcient of x2=0.861        standard error fo x2=0.372          

C. Interpret each coefficient

y intercept is 1283.000 when x1 and x2 is 0

For x1,slope=25.228 ,holding x2 constant ,for unit increase in x1,y increases by 25.228 on an average.

For x2,slope=0.861        ,holding x1 constant ,for unit increase in x2,y increases by 0.861       on an average.