Class Notes (923,486)
CA (543,255)
Ryerson (30,924)
QMS (276)
QMS 202 (65)
Lecture

Chapter 14

6 Pages
150 Views

Department
Quantitative Methods
Course Code
QMS 202
Professor
Jason Chin- Tiong Chan

This preview shows pages 1-2. Sign up to view the full 6 pages of the document.
CQMS202-Business Statistics II Chapter14
Chapter14 Multiple Regression
Outcomes:
1. Describe the relationship between several independent variables
and a dependent variable using a multiple regression
2. Compute and interpret the multiple standard error and the
coefficient of determination
3. Conduct a Global test (F test) to determine the usefulness of the
model
4. Conduct a test of hypothesis on each of the regression coefficient.
5. Use the multiple regression model for estimation and prediction
Multiple Regression Models
1. The simple linear regression model was used to analyze how one
quantitative variable (the dependent variable y) is related to one
other quantitative variable (the independent variable x).
2.
Multiple regression allows for any number of independent variables.
Example 1
The director of marketing at Ryerson Wholesale Products is studying
the monthly sales. Three independent variables were selected as
estimators of sales: regional population (
1
x
) , per-capita income (
2
x
)
and regional unemployment rate (
3
x
). The regression equation was
computed to be (in dollars):
321
116006.9394.064100
ˆxxxy
++=
a. What is the full name of the equation?
b. Interpret the number 64100
c. What are the estimated monthly sales for a particular region with a
population of 796000 per-capita income of $6940, and an
Fall2010 Page#1
www.notesolution.com
CQMS202-Business Statistics II Chapter14
unemployment rate of 6.0 percent?(Use 6.0 in your calculation)
3.
We expect to develop models that fit the data better than would a
simple linear regression model.
4. General form of the Multiple Regression Model
εββββ
+++++=
kk
xxxy ...
22110
where
y
is the dependent variable
k
xxx ,...,,
21
are independent variables
kk
xxxyE
ββββ
++++=
...)(
22110
is the deterministic portion of
the
model
i
β
determines the contribution of the independent variable
i
x
Note: The symbols
k
xxx ,...,,
21
may represent higher-order terms.
For example,
1
x
might represent the current interest rate,
2
x
might
represent
2
1
x
, and so forth.
Fall2010 Page#2
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
CQMS202-Business Statistics II Chapter14 Chapter14 Multiple Regression Outcomes: 1. Describe the relationship between several independent variables and a dependent variable using a multiple regression 2. Compute and interpret the multiple standard error and the coefficient of determination 3. Conduct a Global test (F test) to determine the usefulness of the model 4. Conduct a test of hypothesis on each of the regression coefficient. 5. Use the multiple regression model for estimation and prediction Multiple Regression Models 1. The simple linear regression model was used to analyze how one quantitative variable (the dependent variable y) is related to one other quantitative variable (the independent variable x). 2. Multiple regression allows for any number of independent variables. Example 1 The director of marketing at Ryerson Wholesale Products is studying the monthly sales. Three independent variables were selected as estimators of sales: regional population ( x 1) , per-capita income ( x 2) and regional unemployment rate ( x3 ). The regression equation was computed to be (in dollars): y = 64100 + 0.394 x + 9.6 x − 11600 x 1 2 3 a. What is the full name of the equation? b. Interpret the number 64100 c. What are the estimated monthly sales for a particular region with a population of 796000 per-capita income of $6940, and an Fall2010 Page#1 www.notesolution.com CQMS202-Business Statistics II Chapter14 unemployment rate of 6.0 percent?(Use 6.0 in your calculation) 3. We expect to develop models that fit the data better than would a simple linear regression model. 4. General form of the Multiple Regression Model y = β 0 β x 1 1 x + 2..2+ β x + εk k y where is the dependent variable x1, x 2..., x k are independent variables E (y) = β 0 β x +1 1x + .2.2+ β x k k is the deterministic portion of the model β i determines the contribution of the independent variable x i Note: The symbols x 1 x ,2.., xk may represent higher-order terms. For example, x 1 might represent the current interest rate, x 2 might 2 represent x1 , and so forth. Fall2010 Page#2 www.notesolution.com CQMS202-Business Statistics II
More Less
Unlock Document


Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit