Consider the first-order model y = Bo + B1x1 + B2x2 + € and assume it is appropriate. Below is the SAS output. The REG Procedure Model: MODEL1 Dependent Variable: earning Number of Observations Read 15 Number of Observations Used 15 Analysis of Variance Sum of Mean Source DF Squares Square F Value Pr > F Model 2 5018232 2509116 8.36 0.0053 Error 12 3600196 300016 Corrected Total 14 8618428 Root MSE 547.73748 R-Square 0.5823 Dependent Mean 2577.13333 Adj R-Sq 0.5126 Coeff Var 21.25375 Parameter Estimates Standard Error t Value Pr > It| Parameter Variable DF Estimate 95% Confidence Limits Intercept 1 -20.35201 652.74532 -0.03 0.9756 -1442.56189 1401.85787 age 1 13.35045 7.67168 1.74 0.1074 -3.36470 30.06559 hour 1 243.71446 63.51174 3.84 0.0024 105.33428 382.09465
Consider the first-order model y = Bo + B1x1 + B2x2 + € and assume it is appropriate. Below is the SAS output. The REG Procedure Model: MODEL1 Dependent Variable: earning Number of Observations Read 15 Number of Observations Used 15 Analysis of Variance Sum of Mean Source DF Squares Square F Value Pr > F Model 2 5018232 2509116 8.36 0.0053 Error 12 3600196 300016 Corrected Total 14 8618428 Root MSE 547.73748 R-Square 0.5823 Dependent Mean 2577.13333 Adj R-Sq 0.5126 Coeff Var 21.25375 Parameter Estimates Standard Error t Value Pr > It| Parameter Variable DF Estimate 95% Confidence Limits Intercept 1 -20.35201 652.74532 -0.03 0.9756 -1442.56189 1401.85787 age 1 13.35045 7.67168 1.74 0.1074 -3.36470 30.06559 hour 1 243.71446 63.51174 3.84 0.0024 105.33428 382.09465
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
1. Find the value of SSE that is minimized by the least squares method.

Transcribed Image Text:EXAMPLE 3.3 (Vendor). Detailed interviews were con-
ducted with over 1,000 street vendors in the city of Puebla,
Mexico, in order to study the factors influencing ven-
dors’ incomes. Vendors were defined as individuals work-
ing in the street, and included vendors with carts and
stands on wheels and excluded beggars, drug dealers,
and prostitutes. The researchers collected data on gen-
der, age x1, hours worked per day x2, annual earnings y,
and education level. A subset of these data (x1, x2 and y)
appears in the accompanying table.
VENDOR
ANNUAL
HOURS WORKED
NUMBER
EARNINGS, y
AGE, x1
PER DAY, x2
21
$2841
29
12
53
1876
2934
21
8
60
62
10
184
1552
18
10
263
281
3065
3670
40
11
50
11
354
2005
65
5
401
515
3215
1930
44
17
8
8
2010
3111
2882
633
70
677
20
9.
710
29
9.
800
1683
15
5
914
1817
14
7
997
4066
33
12

Transcribed Image Text:Consider the first-order model y = Bo + B1x1 + 62x2 + € and assume it is appropriate. Below is
the SAS output.
The REG Procedure
Model: MODEL1
Dependent Variable: earning
Number of Observations Read
15
Number of Observations Used
15
Analysis of Variance
Sum of
Mean
Source
DF Squares
Square F Value
Pr >F
Model
2 5018232 2509116
8.36 0.0053
Error
12 3600196
300016
Corrected Total
14 8618428
Root MSE
547.73748 R-Square 0.5823
Dependent Mean 2577.13333 Adj R-Sq
0.5126
Coeff Var
21.25375
Parameter Estimates
Parameter
Estimate
Standard
Error t Value Pr > |t|
Variable
DF
95% Confidence Limits
Intercept
1
-20.35201 652.74532
-0.03 0.9756 -1442.56189
1401.85787
age
1
13.35045
7.67168
1.74 0.1074
-3.36470
30.06559
hour
1
243.71446
63.51174
3.84 0.0024
105.33428
382.09465
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