Question

Using the following data, determine the equation of the regression model. How many independent variables are there? Comment on the meaning of these regression coefficients.

Predictor Coefficient

Constant 123 . 62
x1 - .175

x2 6 . 02

x3 . 00026
x4   . 0041
  

(Round your answers to 5 decimal places.)

The regression equation is: y?=

Answer 1

There are 4 independent variables namely x₁, x₂, x₃, and x₄

The regression coefficient tells about the change in the value of dependent variable corresponding to the unit change in the independent variable. For instance, coefficient of x1 is -0.175. This means keeping other variables (x₂, x₃, and x₄) constant, if value of x₁ increases by one unit value of y decreases by -0.175 unit. Similarly, keeping other variables (x₁, x₃, and x₄) constant, if value of x₂ increases by one unit value of y increases by 6.02 units. Same way other variables can be interpreted.

Regression equation is as follows:

y = 123.62 - 0.175x₁ + 6.02x₂ + 0.0026x₃ + 0.0041x₄