Exam 28: Multiple Regression Wisdom

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How would you interpret the coefficient of sex in this model?

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The coefficient of sex is rather small and it's not statistically significant.We have no evidence that it contributes significantly to weight.

Here are plots of data for Studentized residuals against Chest. Here are plots of data for Studentized residuals against Chest.   Interpret this plot of the residuals. Interpret this plot of the residuals.

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It appears that there is a problem with the independence assumption as there is a clear pattern in the residual plot.

An actuary wishes to predict the life expectancy of a person based on several variables.One categorical variable of interest is their relationship status - single,married,divorced,widowed,or common-law.If the actuary wished to include "relationship status" in a regression model,how many indicator variables would he/she need to use in the model?

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How would you interpret the coefficient of Science in the multiple regression?

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Here are plots for Studentized residuals against Chest.  Here are plots for Studentized residuals against Chest.   Here is the same regression with the two data points with residuals above 2 removed: Dependent variable is: Weight 30 total bears of which 2 are missing R-squared = 93.8% R-squared (adjusted)= 93.0% s = 7.22 with 28 - 4 = 24 degrees of freedom  \begin{array} { c }  & \text { Sum of } & &{ \text { Mean } } \\ \text { Source } & \text { Squares } & \text { DF } & \text { Square } & \text { F-ratio } \\ \text { Regression } & 21671 & 3 & 7223.67 & 123.23 \\ \text { Residual } & 1406.88 & 24 & 58.62 & \end{array}   \begin{array} { l r c r r }  \text { Variable } & \text { Coefficient } & \text { SE(Coeff) } & \text { t-ratio } & \text { P-value } \\ \text { Intercept } & - 167.52 & 7.47 & - 22.43 & < 0.0001 \\ \text { Chest } & 3.01 & 2.98 & 1.01 & 0.3218 \\ \text { Length } & 4.05 & 1.53 & 2.65 & 0.0135 \\ \text { Sex } & - 2.03 & 2.14 & - 0.95 & 0.3509 \end{array}  Compare the regression with the previous one.In particular,which model is likely to make the best prediction of weight? Which seems to fit the data better? Here is the same regression with the two data points with residuals above 2 removed: Dependent variable is: Weight 30 total bears of which 2 are missing R-squared = 93.8% R-squared (adjusted)= 93.0% s = 7.22 with 28 - 4 = 24 degrees of freedom Sum of Mean Source Squares DF Square F-ratio Regression 21671 3 7223.67 123.23 Residual 1406.88 24 58.62 Variable Coefficient SE(Coeff) t-ratio P-value Intercept -167.52 7.47 -22.43 <0.0001 Chest 3.01 2.98 1.01 0.3218 Length 4.05 1.53 2.65 0.0135 Sex -2.03 2.14 -0.95 0.3509 Compare the regression with the previous one.In particular,which model is likely to make the best prediction of weight? Which seems to fit the data better?

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Here are plots of data for Studentized residuals against Length. Here are plots of data for Studentized residuals against Length.   Interpret this plot of the residuals. Interpret this plot of the residuals.

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The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation:  Salary =40,000+2,500x+1,500 g+1,000xg\text { Salary } = 40,000 + 2,500 x + 1,500 \mathrm {~g} + 1,000 \mathrm { xg } Interpret the value of the coefficient of gender (g).

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Here are plots of data for Studentized residuals against Length.  Here are plots of data for Studentized residuals against Length.   Here is the same regression with all of the points at 70 removed. Dependent variable is: Weight 30 total bears of which 10 are missing R-squared = 97.8% R-squared (adjusted)= 97.3% s = 2.96 with 20 - 4 = 16 degrees of freedom  \begin{array} { l r r r r }  & \text { Sum of } & & { \text { Mean } } \\ \text { Source } & \text { Squares } & \text { DF } & \text { Square } & \text { F-ratio } \\ \text { Regression } & 7455.0 & 3 & 2485 & 238.26 \\ \text { Residual } & 166.89 & 16 & 10.43 & \end{array}   \begin{array} { l r c r r }  \text { Variable } & \text { Coefficient } & \text { SE(Coeff) } & \text { t-ratio } & \text { P-value } \\ \text { Intercept } & - 169.16 & 3.23 & - 52.37 & < 0.0001 \\ \text { Chest } & 0.84 & 0.58 & 1.45 & 0.1590 \\ \text { Length } & 5.59 & 2.14 & 2.61 & 0.0148 \\ \text { Sex } & - 1.19 & 1.98 & - 0.60 & 0.5537 \end{array}  Compare the regression with the previous one.In particular,which model is likely to make the best prediction of weight? Which seems to fit the data better? Here is the same regression with all of the points at 70 removed. Dependent variable is: Weight 30 total bears of which 10 are missing R-squared = 97.8% R-squared (adjusted)= 97.3% s = 2.96 with 20 - 4 = 16 degrees of freedom Sum of Mean Source Squares DF Square F-ratio Regression 7455.0 3 2485 238.26 Residual 166.89 16 10.43 Variable Coefficient SE(Coeff) t-ratio P-value Intercept -169.16 3.23 -52.37 <0.0001 Chest 0.84 0.58 1.45 0.1590 Length 5.59 2.14 2.61 0.0148 Sex -1.19 1.98 -0.60 0.5537 Compare the regression with the previous one.In particular,which model is likely to make the best prediction of weight? Which seems to fit the data better?

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Here is the scatterplot of externally Studentized residuals against predicted values: Here is the scatterplot of externally Studentized residuals against predicted values:   Comment on what this diagnostic display indicates. Comment on what this diagnostic display indicates.

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A real estate agent wishes to predict the selling price of a home based on several variables.One categorical variable of interest is the quality of the home - low,medium,or high.If the real estate agent wished to include "quality" in a regression model,how many indicator variables would he/she need to use in the model?

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The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation:  Salary =40,000+2,500x+1,500 g\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} What is the least-squares regression line for predicting the salary of male employees?

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What is the purpose of an indicator variable in a regression model?

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The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation:  Salary =40,000+2,500x+1,500 g\text { Salary } = 40,000 + 2,500 x + 1,500 \mathrm {~g} What is the least-squares regression line for predicting the salary of female employees?

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Here are histograms of the leverage and Studentized residuals for the regression model: Here are histograms of the leverage and Studentized residuals for the regression model:     Comment on what these diagnostic displays indicate. Here are histograms of the leverage and Studentized residuals for the regression model:     Comment on what these diagnostic displays indicate. Comment on what these diagnostic displays indicate.

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The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation:  Salary =40,000+2,500x+1,500 g+1,000xg\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg } Interpret the value of the coefficient of the interaction term xg.

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The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation:  Salary =40,000+2,500x+1,500 g+1,000xg\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg } What is the least-squares regression line for predicting the salary of male employees?

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A histogram of the externally Studentized residuals looks like this: A histogram of the externally Studentized residuals looks like this:   Comment on the distribution of the Studentized Residuals. Comment on the distribution of the Studentized Residuals.

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The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation:  Salary =40,000+2,500x+1,500 g+1,000xg\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg } Predict the salary for a male employee with 15 years of experience.

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Here are histograms of the leverage and Studentized residuals for the regression model: Here are histograms of the leverage and Studentized residuals for the regression model:     The 14th employee who was hired is highlighted in both displays.Do you think this employee is an influential case? Here are histograms of the leverage and Studentized residuals for the regression model:     The 14th employee who was hired is highlighted in both displays.Do you think this employee is an influential case? The 14th employee who was hired is highlighted in both displays.Do you think this employee is an influential case?

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Here is a histogram of leverages for this regression: Here is a histogram of leverages for this regression:   Without doing any calculating,how would you expect the coefficient and t-statistic of English to change if we were to omit the 6 highest leverage points? Without doing any calculating,how would you expect the coefficient and t-statistic of English to change if we were to omit the 6 highest leverage points?

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