Consider the regression equation In Y₁ = 3.89 +0.5X11 +0.3X2i. a. Predict the value of Y when X₁ = 7.1 and X₂ = 4.9. Interpret the meaning of the regression coefficients 100-b and 100.h

MATLAB: An Introduction with Applications
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A. Holding constant the other variables, for every one unit increase in \( X_1 \) or \( X_2 \), the value of \( Y \) increases by \( 100 \cdot b_1 \) or \( 100 \cdot b_2 \) percent, respectively.

B. For every decrease of one unit of ln \( Y \), holding \( b_0 \) constant, the estimated change in \( X_1 \) or \( X_2 \) is \( 100 \cdot b_1 \) or \( 100 \cdot b_2 \) units, respectively.

C. Holding constant the other variables, for every one percent increase in \( X_1 \) or \( X_2 \), the value of \( Y \) increases by \( b_1 \) or \( b_2 \) units, respectively.

D. Holding constant the other variables, for every one percent increase in \( X_1 \) or \( X_2 \), the value of \( Y \) increases by \( b_2 \) or \( b_1 \) percent, respectively.
Transcribed Image Text:A. Holding constant the other variables, for every one unit increase in \( X_1 \) or \( X_2 \), the value of \( Y \) increases by \( 100 \cdot b_1 \) or \( 100 \cdot b_2 \) percent, respectively. B. For every decrease of one unit of ln \( Y \), holding \( b_0 \) constant, the estimated change in \( X_1 \) or \( X_2 \) is \( 100 \cdot b_1 \) or \( 100 \cdot b_2 \) units, respectively. C. Holding constant the other variables, for every one percent increase in \( X_1 \) or \( X_2 \), the value of \( Y \) increases by \( b_1 \) or \( b_2 \) units, respectively. D. Holding constant the other variables, for every one percent increase in \( X_1 \) or \( X_2 \), the value of \( Y \) increases by \( b_2 \) or \( b_1 \) percent, respectively.
**Regression Analysis Overview**

This section will explore a given regression equation and interpret its components.

**Equation:**

\[
\ln \hat{Y}_i = 3.89 + 0.5X_{1i} + 0.3X_{2i}
\]

**Tasks:**

1. **Predictive Analysis**

   - **Objective:** Calculate the predicted value of \( Y \) when \( X_1 = 7.1 \) and \( X_2 = 4.9 \).
   - **Procedure:** Substitute these values into the regression equation to solve for \( \ln \hat{Y}_i \), then exponentiate the result to obtain \( \hat{Y}_i \).

2. **Coefficient Interpretation**

   - **Objective:** Interpret the scaled regression coefficients \( 100 \cdot b_1 \) and \( 100 \cdot b_2 \).
   - **Explanation:** Understand what a 1-unit increase in \( X_1 \) and \( X_2 \) implies in percentage terms for \( Y \), assuming the other variable is held constant.

**Note:** This section covers predictive analysis using a logarithmic regression model and provides insights into interpreting regression coefficients in a multiplicative context.
Transcribed Image Text:**Regression Analysis Overview** This section will explore a given regression equation and interpret its components. **Equation:** \[ \ln \hat{Y}_i = 3.89 + 0.5X_{1i} + 0.3X_{2i} \] **Tasks:** 1. **Predictive Analysis** - **Objective:** Calculate the predicted value of \( Y \) when \( X_1 = 7.1 \) and \( X_2 = 4.9 \). - **Procedure:** Substitute these values into the regression equation to solve for \( \ln \hat{Y}_i \), then exponentiate the result to obtain \( \hat{Y}_i \). 2. **Coefficient Interpretation** - **Objective:** Interpret the scaled regression coefficients \( 100 \cdot b_1 \) and \( 100 \cdot b_2 \). - **Explanation:** Understand what a 1-unit increase in \( X_1 \) and \( X_2 \) implies in percentage terms for \( Y \), assuming the other variable is held constant. **Note:** This section covers predictive analysis using a logarithmic regression model and provides insights into interpreting regression coefficients in a multiplicative context.
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