Question

Forty observations were used to estimate y=β0+β1x1+β2x2+εy=\beta_0+\beta_1 x_1+\beta_2 x_2+\varepsilon. A portion of the regression results is shown in the accompanying table.

 Coefficients  Standard Error  tStat p-value  Intercept 13.832.425.711.56E06x12.530.1516.875.84E19x20.290.064.832.38E05\begin{aligned} &\begin{array}{|l|l|l|l|l|} \hline & \text { Coefficients } & \text { Standard Error } & \text { tStat } & p \text {-value } \\ \hline \text { Intercept } & 13.83 & 2.42 & 5.71 & 1.56 \mathrm{E}-06 \\ \hline x_1 & -2.53 & 0.15 & -16.87 & 5.84 \mathrm{E}-19 \\ \hline x_2 & 0.29 & 0.06 & 4.83 & 2.38 \mathrm{E}-05 \\ \hline \end{array} \end{aligned}

b. What is the sample regression equation?

Solution

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Answered 9 months ago
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In this problem is given that n=40n=40 observations were used to estimate the multiple linear regression model

y=β0+β1x1+β2x2+ε()y = \beta_0 + \beta_1x_1 +\beta_2x_2 + \varepsilon\,\,\,(\star)

where yy is the response variable, x1x_1 and x2x_2 are the explanatory variables, ε\varepsilon is the random error term, and the coefficients β0\beta_0, β1\beta_1 and β2\beta_2 are the unknown parameters.

In general, the sample regression equation for the regression model ()(\star) has the form:

y^=b0+b1x1+b2x2()\hat{y}=b_0+b_1x_1+b_2x_2\,\,\, (\star\star)

where coefficients b0b_0, b1b_1 and b2b_2 are numbers estimated from the data, y^\hat{y} is the predicted value of the response variable yy, and x1x_1 and x2x_2 are the explanatory variables.

For each explanatory variable xjx_j, bjb_j represents the corresponding slope coefficient, where j=1,2j = 1, 2.

Using the results in the given table, our task in this part of the problem is to write the sample regression equation.

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