Question

In: Statistics and Probability

How do I explain the following regression result in terms of the coefficients of each dependent...

How do I explain the following regression result in terms of the coefficients of each dependent variable on the independent variable which is revenue

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.997839
R Square 0.995683
Adjusted R Square 0.990286
Standard Error 753750.6
Observations 10
ANOVA
df SS MS F Significance F
Regression 5 5.241E+14 1.048E+14 184.4968493 8.11978E-05
Residual 4 2.27256E+12 5.681E+11
Total 9 5.26373E+14
Coefficients Standard Error t Stat P-value Lower 95%
Intercept 1866377 824571.4499 2.2634507 0.086350341 -423000.5781
SQFT (x1) 186.4999 6.709995639 27.794335 9.96753E-06 167.8699299
Population (x2) 62.95023 5.336191975 11.796845 0.000295505 48.13458323
Manager A 4163155 636926.1245 6.5363225 0.002830839 2394764.135
Manager B 2109981 693293.1413 3.0434186 0.038273892 185090.9244
Manager C 2721259 800988.7528 3.3973752 0.027343382 497357.9826

Solutions

Expert Solution

The regression equation for the predicted variable revenue would be as follows:

Predicted Revenue = 1866337 + SQFT*(186.4999) + Population *(62.95023)+ Manager A *(4163155) + Manager B *(2109981) + Mnager C *(2721259)

Predicted Revenue is dependent of the coefficients as follows:

Intercept value is the minimum value revenue when all other variables are zero.

Every one unit change in SQFT, the predicted revenue would be changed by 186.4999 units

similarly, every one unit change in Population, the predicted Revenue would change by 62.95023 units

For every one unit change in Manager A, Manager B and Manager C, the predicted Revenu will be affected by 4163155, 2109981, 2721253 units respectively.

This is how we use coefficients in interpreting a regression equation.


Related Solutions

I have to do a simple linear regression project. The dependent variable that I chose is...
I have to do a simple linear regression project. The dependent variable that I chose is international tourist receipts (US$ billions) and the independent variable I chose is International tourist arrivals in (billions). Did I set up my variables correctly? I am using data from the World Bank. The main trouble I am having is why testing the correlation between these two variables is important and need some ideas on answering the few questions in the introduction of the essay,...
How do you interpret coefficients if the dependent variable is a dummy variable? (e.g. what would...
How do you interpret coefficients if the dependent variable is a dummy variable? (e.g. what would the coefficients for "income," "years of education," or "height" mean if the dependent variable was the dummy variable, "Famous?"? 2. Suppose you applied a scalar to a variable. Then you used both the original variable and the scaled variable as explanatory variables. What would happen and why?
When I ran a bivariate regression, I got the following table Coefficients: Estimate Std. Error z...
When I ran a bivariate regression, I got the following table Coefficients: Estimate Std. Error z value Pr(>|z|) (Intercept) 10.8681 2.8754 3.780 0.000157 *** ETHWAR -1.0170 0.4524 -2.248 0.024570 * When I ran a multivariate regression, I got the following table Coefficients: Estimate Std. Error z value Pr(>|z|) (Intercept) 10.811 2.987 3.619 0.000296 *** ETHWAR -13.804 4844.876 -0.003 0.997727 CIVTOT 12.730 4844.877 0.003 0.997903 Why did the p-value for ETHWAR change? And why did it change so dramatically?
For mortar testing explain how linear regression coefficients are associated with output (compressive strength) ?
For mortar testing explain how linear regression coefficients are associated with output (compressive strength) ?
How can I explain multivariate regression?
How can I explain multivariate regression?
How do we use multiple regression analysis on how much variance in a continuous dependent variable...
How do we use multiple regression analysis on how much variance in a continuous dependent variable is explained by a set of predictors?
Define each of the following terms, and explain how each is used in determining the QBI...
Define each of the following terms, and explain how each is used in determining the QBI deduction: a. Modified taxable income. b. Qualified business income. c. Qualified trade or business. d. “Specified services” business.
How do you obtain the beta coefficients in multiple linear regression in short term load forecasting?...
How do you obtain the beta coefficients in multiple linear regression in short term load forecasting? Can anyone provide me a guide to obtain this? The internet is telling me to obtain estimates but I do not get it
For each of the following, (a) calculate the elasticity, (b) interpret your result (in terms of...
For each of the following, (a) calculate the elasticity, (b) interpret your result (in terms of whether a good is elastic/inelastic, and what the percentage change in quantity will be in response to a 1% change in price), and (c) indicate what would happen to revenues for this good if the price was increased In response to a 10% increase in price, the quantity demanded of Bubly decreased by 20% In response to a 5% decrease in price, the quantity...
For each of the following, (a) calculate the elasticity, (b) interpret your result (in terms of...
For each of the following, (a) calculate the elasticity, (b) interpret your result (in terms of whether a good is elastic/inelastic, luxury/necessity, and what the percentage change in quantity will be in response to a 1% change in price), and (c) indicate what would happen to revenues for this good if the price was increased In response to a 10% increase in price, the quantity demanded of Bubly decreased by 20% In response to a 5% decrease in price, the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT