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# Atienza Wilson T.

CHE-210218-53894

## 1. In a regression analysis involving 30 observations, the following estimated

regression equation was obtained.
�  ̂=17.6+3.8𝑥_1−2.3𝑥_2+7.6𝑥_3+2.7𝑥_4
a. Interpret b₁, b₂, b₃, and b₄ in this estimated regression equation.

b₁= 3.8 -
b2= 2.3
b3= 7.6
b4 = 2.7

## b. Predict y when x₁ = 10, x₂ = 5, x₃ = 1, x₄ = 2

y = 57.1
2. Consider the following data for a dependent variable y and two independent
variables x₁ and x₂.
x₁ x₂ y
30 12 94
47 10 108
25 17 112
51 16 178
40 5 94
51 19 175
74 7 170
36 12 117
59 13 142
76 16 211

## a. Develop an estimated regression equation relating y to x ₁. Estimate y if x ₁ = 45

SUMMARY OUTPUT

Regression Statistics Y to x₁
250
Multiple R 0.812425
200
R Square 0.660035 f(x) = 1.9435711862x + 45.0593689924
150 R² = 0.6600351312
Standard Err 25.40092
100

Observation 10 50
0
20 30 40 50 60 70 80
ANOVA
df SS MS F Significance F
Regression 1 10021.2 10021 15.531843241 0.00429
Residual 8 5161.65 645.21
Total 9 15182.9

CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 45.0594 25.4181 1.7727 0.1142 -13.5550 103.6737 -40.2284 130.3471
x₁ 1.9436 0.4932 3.9410 0.0043 0.8063 3.0808 0.2888 3.5983

ŷ = 45.0594 + 1.9436x₁
ŷ = 132.521

## b. Develop an estimated regression equation relating y to x2. Estimate y if x2 = 15

SUMMARY OUTPUT
Y to x₂
Regression Statistics
250
Multiple R 0.47066598
200
R Square 0.22152646 150
Standard Err38.4374262 50
Observation 10 0
4 6 8 10 12 14 16 18 20

ANOVA
df SS MS F Significance F
Regressi 1 3363.4142 3363.414 2.276521469 0.16978136
Residual 8 11819.486 1477.436
Total 9 15182.9

CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 85.217102 38.3519621 2.221975 0.057006 -3.2226815306 173.656885 -43.4685861 213.9027893
x₂ 4.3214881 2.8641611 1.5088146 0.169781 -2.2832792851 10.9262554 -5.28888182 13.93185794
ŷ = 85.2171 + 4.3215x₁
ŷ = 150.0395

## c. Develop an estimated regression equation relating y to x ₁ and x ₂. Estimate y if x ₁

= 45 and x₂ = 15.
SUMMARY OUTPUT
Y relating to x₁ and x₂
Regression Statistics 250
Multiple R 0.96204215 200
f(x) = 1.9435711862x + 45.0593689924
R Square 0.9255251 150 R² = 0.6600351312
100
Standard Err12.7096422
50
Observation 10
0 f(x) = - 0.0140600852x + 13.3875381658
20 R²30
= 0.0029119444
40 50 60 70 80
ANOVA
df SS MS F Significance F
Regressi 2 14052.155 7026.077 43.4956964293 0.00011273
Residual 7 1130.745 161.535
Total 9 15182.9

CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept -18.3683 17.9715 -1.0221 0.3408 -60.8641 24.1276 -81.2592 44.5227
x₁ 2.0102 0.2471 8.1345 0.0001 1.4258 2.5945 1.1454 2.8750
x₂ 4.7378 0.9484 4.9954 0.0016 2.4951 6.9805 1.4188 8.0569

ŷ = 143.1577

## 3. The estimated regression equation for a model involving two independent

variables and 10 observations follows.
ŷ = 29.1270 + 0.5906x₁ + 0.4980x₂
a. Interpret b₁ and b₂ in this estimated regression equation.
b1 = 0.5960
b2 = 0.4890

## b. Predict y when x₁ = 180, x₂ = 310.

y = 29.1270 + 0.5906(180) + 0.4980(310)
y = 289.815

Applications
4. A shoe store developed the following estimated regression equation relating sales to inventory
ŷ = 25 + 10x₁ + 8x₂

where
x1 = inventory investment (\$1000s)
y = sales (\$1000s)

## a. Predict the sales resulting from a \$15,000 investment in inventory and an

ŷ = 25 + 10(15000) + 8(10000)
y = 230025
b. Interpret b1 and b2 in this estimated regression equation.
b₁ = 10
b₂ = 8
5. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross
revenue as a function of advertising expenditures. Historical data for a sample of
eight weeks follow.

## Weekly Gross Revenue Television Advertising

(\$1000s) (\$1000s)
96 5 1.5
90 2 2
95 4 1.5
92 2.5 2.5
95 3 3.3
94 3.5 2.3
94 2.5 4.2
94 3 2.5

## a. Develop an estimated regression equation with the amount of

W e e k l y G ro s s Reve n u e

## television advertising as the independent variable.

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.80780741
Weekly Gross Revenue
R Square 0.65255281
100
Adjusted R 0.59464494 95 f(x) = 1.6038647343x + 88.6376811594
R² = 0.6525528086
Standard Err1.21517512 90

85
Observation 8 1.5 2 2.5 3 3.5 4 4.5 5 5.5

ANOVA
df SS MS F Significance F

## Regression 1 16.640097 16.6401 11.2688113413 0.01528808

Residual 6 8.8599034 1.476651
Total 7 25.5

CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 88.637681 1.58236713 56.015876 2.17E-09 84.7657682729 92.509594 82.77116892 94.5041934
Television
(\$1000s) 1.6038647 0.47778079 3.356905 0.015288 0.4347772571 2.77295221 -0.16747315 3.375202623

ŷ = 93.8564 -0.0430x₁

## b. Develop an estimated regression equation with both television

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.958663
R Square 0.919036
Standard Err 0.642587
Observation 8
ANOVA
df SS MS F Significance F
Regressi 2 23.435 11.718 28.378 0.002
Residual 5 2.065 0.413
Total 7 25.500
CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 83.2301 1.5739 52.8825 0.0000 79.1843 87.2759 76.8840 89.5762
Television
(\$1000s) 2.2902 0.3041 7.5319 0.0007 1.5086 3.0718 1.0642 3.5162
Nespaper
(\$1000s) 1.3010 0.3207 4.0567 0.0098 0.4766 2.1254 0.0079 2.5941

## c. Is the estimated regression equation coefficient for television

advertising expenditures the same part (a) and in part (b)? Interpret the
coefficient in each case.
The estimated regression equation coefficient is different.
Coefficient in (a): b₁ = -0.0430
Coefficient in (b): b₁ = 2.2902;
b₂ = 1.3010
d. Predict the weekly gross revenue for a week when \$3500 is spent on
ŷ = 83.2301 + 2.2902x₁ + 1.301x₂
y = 93.5876

6. The National Basketball Association (NBA) records a variety of statistics for each
team. Four of these statistics are the proportion of games won (PCT), the proportion
of field goals made by the team (FG%), the proportion of the three-point shots made
by the team's opponent (Opp 3 Pt%), and the number of turnovers committed by the
team's opponent (Opp TO). The following data show the values of these statistics for
the 29 teams in the NBA for a protion of the 2004 season (NBA website, January 3,
2004).

Opp 3 Pt Opp
Team PCT FG% %
Team PCT FG% Opp 3 Pt% Opp TO
TO
Atlanta 0.265 0.435 0.346 13.206 New Orleans 0.636 0.421 0.33 16.909
Boston 0.471 0.449 0.369 16.176 New York 0.412 0.442 0.33 13.588
Chicago 0.313 0.417 0.372 15.031 Orlando 0.242 0.417 0.36 14.242
Cleveland 0.303 0.438 0.345 12.515 Philadelphia 0.438 0.428 0.364 16.938
Dallas 0.581 0.439 0.332 15 Phoenix 0.364 0.438 0.326 16.515
Denver 0.606 0.431 0.366 17.818 Portland 0.484 0.447 0.367 12.548
Detroit 0.606 0.423 0.262 15.788 Sacramento 0.724 0.466 0.327 15.207
lden State 0.452 0.445 0.384 14.29 San Antonio 0.688 0.429 0.293 15.344
Houston 0.548 0.426 0.324 13.161 Seattle 0.533 0.436 0.35 16.767
Indiana 0.706 0.428 0.317 15.647 Toronto 0.516 0.424 0.314 14.129
. Clippers 0.464 0.424 0.326 14.357 Utah 0.531 0.456 0.368 15.469
.A. Lakers 0.724 0.465 0.323 16 Washington 0.3 0.411 0.341 16.133
Memphis 0.485 0.432 0.358 17.848
Miami 0.424 0.41 0.369 14.97
Milwaukee 0.5 0.438 0.349 14.75
Minnesota 0.677 0.473 0.348 13.839
ew Jersey 0.563 0.435 0.338 17.063

a. Determine the estimated regression equation that can be used to predict the
proportion of games won given the proportion of field goals made by the team.

## Regression Statistics 0.8

PCT

0.6
Multiple R 0.448158 f(x) = 3.9575950686x - 1.2207145707
0.4 R² = 0.2008457674
R Square 0.200846
0.2
0
Standard Err 0.126636
0.4 0.41 0.42 0.43 0.44 0.45 0.46 0.47 0.48
Observation 29
FG%
ANOVA
df SS MS F Significance F
Regressi 1 0.10882 0.1088 6.7857185723 0.014763
Residual 27 0.43299 0.016
Total 28 0.54181

CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept -1.2207 0.661717 -1.84477 0.0761 -2.57844613 0.137017 -3.054123 0.612694
FG% 3.9576 1.519265 2.60494 0.0148 0.8403214874 7.074869 -0.251806 8.1669958

ŷ = 3.9576x₁ - 1.2207

## b. Provide an interpretation for the slope of the estimated regression equation

developed in part (a).

m=3.9576, which means every increase in FG% by one unit, there will be a change
in PCT by 3.9576 unit.

c. Determine the estimated regression equation that can be used to predict the
proportion of games won given the proportion of field goals made by the team, the
proportion of three-point shots made by the teams's opponent, and the number of
turnovers committed by the team's opponent.
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.750846
R Square 0.563769
Standard Err 0.097233
Observation 29

ANOVA
df SS MS F Significance F
Regressi 3 0.30546 0.1018 10.769714494 9.944E-05
Residual 25 0.23635 0.0095
Total 28 0.54181

CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept -1.2346 0.600251 -2.05678 0.0503 -2.470825606 0.001655 -2.907747 0.4385762
FG% 4.81657 1.183043 4.07134 0.0004 2.3800425422 7.253088 1.5189087 8.114222
Opp 3 Pt% -2.5895 0.704101 -3.67769 0.0011 -4.039591903 -1.139344 -4.552105 -0.626831
Opp TO 0.03443 0.012533 2.74686 0.011 0.0086139285 0.060236 -0.000508 0.0693587

## d. Discuss the practical implications of the estimated regression equation developed

in part (c).

The data shows that there is a 4.8% increase in the games won if the proportion of the
game increase by 1 % and there is also a decrease by 2.59% if the oppenents team
committed more turnovers

e. Predict the proportion of games won for a team with the following values for the
three independent variables: FG% = 0.45, Opp 3 Pt% = 0.34, and Opp TO =17.

## ŷ = 4.8166x₁ - 2.5895x₂ + 0.0344x₃ - 1.2346

ŷ = 4.8166(0.45) - 2.5895(0.34) + 0.0344(17) - 1.2346
ŷ = 0.63724
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