Using 50 observations, the following regression output is obtained from estimating y = β0 + β1x + β2d1 + β3d2 + ε. Intercept Coefficients StandardError t Stat p-value x −0.85 0.20 −4.25 0.0001 d1 3.30 1.20 2.75 0.0085 d2 −14.28 16.80 −0.85 0.3997 7.35 2.10 3.50 0.0010 Compute yˆy^ for x = 290, d1 = 1, and d2 = 0; compute yˆy^ for x = 290, d1 = 0, and d2 = 1. (Round your answers to 2 decimal places.) x = 290, d1 = 1 and d2 = 0 x = 290, d1 = 0 and d2 = 1
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Using 50 observations, the following regression output is obtained from estimating y = β0 + β1x + β2d1 + β3d2 + ε.
| Intercept | Coefficients | Standard Error |
t Stat | p-value |
|
x |
−0.85 | 0.20 | −4.25 | 0.0001 |
| d1 | 3.30 | 1.20 | 2.75 | 0.0085 |
| d2 | −14.28 | 16.80 | −0.85 | 0.3997 |
| 7.35 | 2.10 | 3.50 | 0.0010 | |
Compute yˆy^ for x = 290, d1 = 1, and d2 = 0; compute yˆy^ for x = 290, d1 = 0, and d2 = 1. (Round your answers to 2 decimal places.)
| x = 290, d1 = 1 and d2 = 0 |
| x = 290, d1 = 0 and d2 = 1 |
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