The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) . $\hat { y }$ = 30 + .7x₁ + 3x₂

Also provided are SST = 1200 and SSE = 384.The yearly income (in $) expected of a 24-year-old female individual is

Question

The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) .

\hat { y }

= 30 + .7x₁ + 3x₂

Also provided are SST = 1200 and SSE = 384.The yearly income (in $) expected of a 24-year-old female individual is

Quizplus · Accepted Answer

The regression equation is $\hat{y} = 30 + 0.7x_1 + 3x_2$. For a 24-year-old female (x₁ = 24, x₂ = 1), $\hat{y} = 30 + 0.7(24) + 3(1) = 30 + 16.8 + 3 = 49.8$. Since y is in $1000s, the income is $49,800.

The Following Estimated Regression Equation Was Developed Relating Yearly Income y^\hat { y }y^​

The Following Estimated Regression Equation Was Developed Relating Yearly Income $\hat { y }$