What is the equation for a simple linear regression model that predicts the dependent variable Y based on a single independent variable X?
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- The object in linear regression is to obtain an equation of a curve that minimizes the sum of squared vertical deviations of data points from the line. true or false?Report the equation of the regression line and interpret it in the context of the problemA family would like to build a linear regression equation to predict the amount of grain harvested per acre of landon their farm. They subdivide their land into several smaller plots of land for testing and would like to select anexplanatory variable they can control. Which of the following is an appropriate explanatory variable that the familycould use to create a linear regression equation? (A) (B) (C) (D) (E) The total amount of rainfall recorded at their farmThe type of crop planted in the plot the previous yearThe average daily temperature at their farmThe variety of grain planted in the plotThe amount of fertilizer applied to each plot of land Why is it that the correct answer is letter E? Why not D? Please explain to me the reason for other choices to be wrong. Thanks!
- when a regression is used as a method of predicting dependent variables from one or more independent variables. How are the independent variables different from each other yet related to the dependent variable?A box office analyst seeks to predict opening weekend box office gross for movies. Toward this goal, the analyst plans to use online trailer views as a predictor. For each of the 66 movies, the number of online trailer views from the release of the trailer through the Saturday before a movie opens and the opening weekend box office gross (in millions of dollars) are collected and stored in the accompanying table. A linear regression was performed on these data, and the result is the linear regression equation Yi=−0.840+1.4108Xi. Determine the coefficient of determination,r2,and interpret its meaning. Determine the standard error of the estimate. How useful do you think this regression model is for predicting opening weekend box office gross? Can you think of other variables that might explain the variation in opening weekend box office gross?A box office analyst seeks to predict opening weekend box office gross for movies. Toward this goal, the analyst plans to use online trailer views as a predictor. For each of the 66 movies, the number of online trailer views from the release of the trailer through the Saturday before a movie opens and the opening weekend box office gross (in millions of dollars) are collected and stored in the accompanying table. A linear regression was performed on these data, and the result is the linear regression equation Yi=−1.254+1.3968Xi. Complete parts (a) through (d). a. Determine the coefficient of determination,r2,and interpret its meaning. b. Determine the standard error of the estimate. c. How useful do you think this regression model is for predicting opening weekend box office gross? d. Can you think of other variables that might explain the variation in opening weekend box office gross?
- A study tests the effect of earning a Master's degree on the salaries of professionals. Suppose that the salaries of the professionals (S,) are not dependent on any other variables. Let D, be a variable which takes the value 0 if an individual has not earned a Master's degree, and a value 1 if they have earned a Master's degree. What would be the regression model that the researcher wants to test? A. S,= Po + B,D,+u, i=1, .. , n. O B. S,= Po + B, + u, i= 1, .. , n. OC. 1=6o +B1,S, + u, i= 1, .. , n. O D. 0=Bo +B, S, + u,, i= 1, .. , n. Suppose that a random sample of 160 individuals suggests that professionals without a Master's degree earn an average salary of $59,000 per annum, while those with a Master's degree earn an average salary of $80,000 per annum. The OLS estimate of the coefficient B, will be $ and that of B, will be $ Click to select your answer(s). DELLIn linear regression analysis, the coefficient for the x-variable when the y-variable is regressed on the x-variable can be thought of as: Note: more than one answer may be correct Group of answer choices How much the value of the predicted y-variable will change when the x-variable changes by one unit. In the simple (two variable) linear regression model, the coefficient can be thought as the slope coefficient that measures the responsiveness of y to changes in x. The estimated coefficient will change if the sample containing x and y changes. The sample coefficient is an estimate of the population coefficient Before interpreting the coefficient for the x-variable, we should test whether the coefficient is statistically significant.A biologist is interested in predicting the percentage increase in lung volume when inhaling (y) for a certain species of bird from the percentage of carbon dioxide in the atmosphere (x). Data collected from a random sample of 20 birds of this species were used to create the least-squares regression equation ŷ = 400-0.08x. Which of the following best describes the meaning of the slope of the least-squares regression line? (A) The percentage increase in lung volume when inhaling increases by 0.08 percent, on average, for every 1 percent increase in the carbon dioxide in the atmosphere. (B) The percentage of carbon dioxide in the atmosphere increases by 0.08 percent, on average, for every 1 percent increase in lung volume when inhaling. (C) The percentage increase in lung volume when inhaling decreases by 0.08 percent, on average, for every 1 percent increase in the carbon dioxide in the atmosphere. (D) The percentage of carbon dioxide in the atmosphere increases by 0.08 percent, on…
- A financial website reported the beta value for a certain company was 0.86. Betas for individual stocks are determined by simple linear regression. The dependent variable is the total return for the stock, and the independent variable is the total return for the stock market, such as the return of a market index. The slope of this regression equation is referred to as the stock's beta. Many financial analysts prefer to measure the risk of a stock by computing the stock's beta value. Suppose the following data show the monthly percentage returns for the market index and the company for a recent year. Month Market Index% Return Company% Return August -3 4 September 8 7 October 0 1 November -2 1 December -5 0 January 0 0 February 7 7 March 0 -2 April 2 0 May -5 -1 a. Develop the least squares estimated regression equation. (Let x = Market Index % Return (as a %), and let y = Company % Return (as a %). Round your numerical values to four decimal places.)The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The accompanying data table gives the value and the annual revenue for 15 major sport teams. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.An oceanographer measured the length, in meters, of a deepwater wave and its speed, in meters per second. The results are shown in the following table. (a) Find the equation of a linear regression line for the data where wave length is the independent variable, x, and speed is the dependent variable. (Round your numerical values to two decimal places.) y= ? (b) Using the equation from part (a), estimate the speed (in meters per second) of a wave that is 200 m long. (Round your answer to one decimal place.) ? m/s