Exam 17: Multiple Regression

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The coefficient of determination ____________________ for degrees of freedom takes into account the sample size and the number of independent variables when assessing model fit.

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For a multiple regression model the following statistics are given: Total variation in y = 250,SSE = 50,k = 4,and n = 20.Then,the coefficient of determination adjusted for the degrees of freedom is:

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In a multiple regression model,the error variable ε\varepsilon is assumed to have a mean of:

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Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations 50 ANOVA  Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT   \begin{array}{l} \text { Regression Statistics }\\ \begin{array} { l l }  \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array} \end{array}  ANOVA     \begin{array} { | l | c c c c | }  \hline & \text { Coeff } & \text { St. Error } & \boldsymbol { t }\boldsymbol {Sat } & \boldsymbol { P } \text {-value } \\ \hline \text { Intercept } & - 1.6335 & 5.807 \mathrm { 8 } & - 0.281 & 0 .7798 \\ \text { Family Incame } & 0.4485 & 0.1137 & 3.9545 & 0 .0003 \\ \text { Family Size } & 4.2615 & 0.8062 & 5.286 & 0 .0001 \\ \text { Education } & - 0.6517 & 0.4319 & - 1.509 & 0 .1383 \\ \hline \end{array}  -{Real Estate Builder Narrative} Which of the following values for the level of significance is the smallest for which at least two explanatory variables are significant individually:  \alpha  = .01,.05,.10,and .15? Coeff St. Error -value Intercept -1.6335 5.807 -0.281 0.7798 Family Incame 0.4485 0.1137 3.9545 0.0003 Family Size 4.2615 0.8062 5.286 0.0001 Education -0.6517 0.4319 -1.509 0.1383 -{Real Estate Builder Narrative} Which of the following values for the level of significance is the smallest for which at least two explanatory variables are significant individually: α\alpha = .01,.05,.10,and .15?

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In reference to the equation y~=0.80+0.12x1+0.08x2\tilde { y } = - 0.80 + 0.12 x _ { 1 } + 0.08 x _ { 2 } ,the value -0.80 is the y-intercept.

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In multiple regression analysis,the ratio MSR/MSE yields the:

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In a multiple regression analysis involving 4 independent variables and 30 data points,the number of degrees of freedom associated with the sum of squares for error,SSE,is 25.

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Life Expectancy An actuary wanted to develop a model to predict how long individuals will live.After consulting a number of physicians,she collected the age at death (y),the average number of hours of exercise per week (x1),the cholesterol level (x2),and the number of points that the individual's blood pressure exceeded the recommended value (x3).A random sample of 40 individuals was selected.The computer output of the multiple regression model is shown below. THE REGRESSION EQUATION IS y = 55.8 + 1.79x1 -0.021x2 -0.061x3 Predicter Coef StDev T Constant 55.8 11.8 4.729 1.79 0.44 4.068 -0.021 0.011 -1.909 -0.016 0.014 -1.143 S=9.47RSq=22.5%S = 9.47 \quad R - S q = 22.5 \% ANALYSIS OF VARIANCE Source of Variation Repressian 3 936 312 3.477 Error 36 3230 89.722 Total 39 4166 -{Life Expectancy Narrative} Is there enough evidence at the 1% significance level to infer that the average number of hours of exercise per week and the age at death are linearly related?

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Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations 50 ANOVA  Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT   \begin{array}{l} \text { Regression Statistics }\\ \begin{array} { l l }  \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array} \end{array}  ANOVA     \begin{array} { | l | c c c c | }  \hline & \text { Coeff } & \text { St. Error } & \boldsymbol { t }\boldsymbol {Sat } & \boldsymbol { P } \text {-value } \\ \hline \text { Intercept } & - 1.6335 & 5.807 \mathrm { 8 } & - 0.281 & 0 .7798 \\ \text { Family Incame } & 0.4485 & 0.1137 & 3.9545 & 0 .0003 \\ \text { Family Size } & 4.2615 & 0.8062 & 5.286 & 0 .0001 \\ \text { Education } & - 0.6517 & 0.4319 & - 1.509 & 0 .1383 \\ \hline \end{array}  -{Real Estate Builder Narrative} Suppose the builder wants to test whether the coefficient on income is significantly different from 0.What is the value of the relevant t-statistic? Coeff St. Error -value Intercept -1.6335 5.807 -0.281 0.7798 Family Incame 0.4485 0.1137 3.9545 0.0003 Family Size 4.2615 0.8062 5.286 0.0001 Education -0.6517 0.4319 -1.509 0.1383 -{Real Estate Builder Narrative} Suppose the builder wants to test whether the coefficient on income is significantly different from 0.What is the value of the relevant t-statistic?

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The coefficient of determination ranges from:

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In a multiple regression analysis,if the model provides a poor fit,this indicates that:

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Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations 50 ANOVA  Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT   \begin{array}{l} \text { Regression Statistics }\\ \begin{array} { l l }  \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array} \end{array}  ANOVA     \begin{array} { | l | c c c c | }  \hline & \text { Coeff } & \text { St. Error } & \boldsymbol { t }\boldsymbol {Sat } & \boldsymbol { P } \text {-value } \\ \hline \text { Intercept } & - 1.6335 & 5.807 \mathrm { 8 } & - 0.281 & 0 .7798 \\ \text { Family Incame } & 0.4485 & 0.1137 & 3.9545 & 0 .0003 \\ \text { Family Size } & 4.2615 & 0.8062 & 5.286 & 0 .0001 \\ \text { Education } & - 0.6517 & 0.4319 & - 1.509 & 0 .1383 \\ \hline \end{array}  -{Real Estate Builder Narrative} At the 0.01 level of significance,what conclusion should the builder draw regarding the inclusion of income in the regression model? Coeff St. Error -value Intercept -1.6335 5.807 -0.281 0.7798 Family Incame 0.4485 0.1137 3.9545 0.0003 Family Size 4.2615 0.8062 5.286 0.0001 Education -0.6517 0.4319 -1.509 0.1383 -{Real Estate Builder Narrative} At the 0.01 level of significance,what conclusion should the builder draw regarding the inclusion of income in the regression model?

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Student's Final Grade A statistics professor investigated some of the factors that affect an individual student's final grade in her course.She proposed the multiple regression model y=β0+β1x1+β2x2+β3x3+y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + € ,where y is the final grade (out of 100 points),x1 is the number of lectures skipped,x2 is the number of late assignments,and x3 is the midterm exam score (out of 100).The professor recorded the data for 50 randomly selected students.The computer output is shown below. THE REGRESSION EQUATION IS y~=41.63.18x11.17x2+.63x3\tilde { y } = 41.6 - 3.18 x _ { 1 } - 1.17 x _ { 2 } + .63 x _ { 3 } Predicter Coef StDsv T Constant 41.6 17.8 2.337 -3.18 1.66 -1.916 -1.17 1.13 -1.035 0.63 0.13 4.846 S=13.74RSq=30.0%S = 13.74 \quad R - S q = 30.0 \% ANALYSIS OF VARIANCE Source of Variation Repressian 3 3716 1238.667 6.558 Esrar 46 8688 188.870 Total 49 12404 -{Student's Final Grade Narrative} Does this data provide enough evidence at the 5% significance level to conclude that the final grade and the number of late assignments are negatively linearly related?

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In multiple regression,the standard error of estimate is defined by sz=SSE/(nk)s _ { z } = \sqrt { \operatorname { SSE } / ( n - k ) } ,where n is the sample size and k is the number of independent variables.

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Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations 50 ANOVA  Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT   \begin{array}{l} \text { Regression Statistics }\\ \begin{array} { l l }  \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array} \end{array}  ANOVA     \begin{array} { | l | c c c c | }  \hline & \text { Coeff } & \text { St. Error } & \boldsymbol { t }\boldsymbol {Sat } & \boldsymbol { P } \text {-value } \\ \hline \text { Intercept } & - 1.6335 & 5.807 \mathrm { 8 } & - 0.281 & 0 .7798 \\ \text { Family Incame } & 0.4485 & 0.1137 & 3.9545 & 0 .0003 \\ \text { Family Size } & 4.2615 & 0.8062 & 5.286 & 0 .0001 \\ \text { Education } & - 0.6517 & 0.4319 & - 1.509 & 0 .1383 \\ \hline \end{array}  -{Real Estate Builder Narrative} One individual in the sample had an annual income of $100,000,a family size of 10,and an education of 16 years.This individual owned a home with an area of 7,000 square feet.What is the residual (in hundreds of square feet)for this data point? Coeff St. Error -value Intercept -1.6335 5.807 -0.281 0.7798 Family Incame 0.4485 0.1137 3.9545 0.0003 Family Size 4.2615 0.8062 5.286 0.0001 Education -0.6517 0.4319 -1.509 0.1383 -{Real Estate Builder Narrative} One individual in the sample had an annual income of $100,000,a family size of 10,and an education of 16 years.This individual owned a home with an area of 7,000 square feet.What is the residual (in hundreds of square feet)for this data point?

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When an additional explanatory variable is introduced into a multiple regression model,coefficient of determination adjusted for degrees of freedom can never decrease.

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Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations 50 ANOVA  Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT   \begin{array}{l} \text { Regression Statistics }\\ \begin{array} { l l }  \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array} \end{array}  ANOVA     \begin{array} { | l | c c c c | }  \hline & \text { Coeff } & \text { St. Error } & \boldsymbol { t }\boldsymbol {Sat } & \boldsymbol { P } \text {-value } \\ \hline \text { Intercept } & - 1.6335 & 5.807 \mathrm { 8 } & - 0.281 & 0 .7798 \\ \text { Family Incame } & 0.4485 & 0.1137 & 3.9545 & 0 .0003 \\ \text { Family Size } & 4.2615 & 0.8062 & 5.286 & 0 .0001 \\ \text { Education } & - 0.6517 & 0.4319 & - 1.509 & 0 .1383 \\ \hline \end{array}  -{Real Estate Builder Narrative} What are the numerator and denominator degrees of freedom for the F-statistic? Coeff St. Error -value Intercept -1.6335 5.807 -0.281 0.7798 Family Incame 0.4485 0.1137 3.9545 0.0003 Family Size 4.2615 0.8062 5.286 0.0001 Education -0.6517 0.4319 -1.509 0.1383 -{Real Estate Builder Narrative} What are the numerator and denominator degrees of freedom for the F-statistic?

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If the Durbin-Watson statistic has a value close to 0,which assumption is violated?

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If the value of the Durbin-Watson test statistic,d,satisfies the inequalities d < dL or d > 4 -dL,where dL and dU are the critical values of d,we conclude that autocorrelation exists.

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Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.865 R Square 0.748 Adjusted R Square 0.726 Standard Error 5.195 Observations 50 ANOVA  Real Estate Builder A real estate builder wishes to determine how house size is influenced by family income,family size,and education of the head of household.House size is measured in hundreds of square feet,income is measured in thousands of dollars,and education is measured in years.A partial computer output is shown below. SUMMARY OUTPUT   \begin{array}{l} \text { Regression Statistics }\\ \begin{array} { l l }  \text { Multiple R } & 0.865 \\ \text { R Square } & 0.748 \\ \text { Adjusted R Square } & 0.726 \\ \text { Standard Error } & 5.195 \\ \text { Observations } & 50 \end{array} \end{array}  ANOVA     \begin{array} { | l | c c c c | }  \hline & \text { Coeff } & \text { St. Error } & \boldsymbol { t }\boldsymbol {Sat } & \boldsymbol { P } \text {-value } \\ \hline \text { Intercept } & - 1.6335 & 5.807 \mathrm { 8 } & - 0.281 & 0 .7798 \\ \text { Family Incame } & 0.4485 & 0.1137 & 3.9545 & 0 .0003 \\ \text { Family Size } & 4.2615 & 0.8062 & 5.286 & 0 .0001 \\ \text { Education } & - 0.6517 & 0.4319 & - 1.509 & 0 .1383 \\ \hline \end{array}  -{Real Estate Builder Narrative} Interpret the value of the Adjusted R-Square. Coeff St. Error -value Intercept -1.6335 5.807 -0.281 0.7798 Family Incame 0.4485 0.1137 3.9545 0.0003 Family Size 4.2615 0.8062 5.286 0.0001 Education -0.6517 0.4319 -1.509 0.1383 -{Real Estate Builder Narrative} Interpret the value of the Adjusted R-Square.

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