Thirty employed single individuals were randomly selected to examine the relationship between their age (Age) and their credit card debt (Debt) expressed as a percentage of their annual income. Three polynomial models were applied and the following table summarizes Excel's regression results. Suppose the restriction β₃ = 0 is imposed on the cubic regression model Debt = β₀+ β₁Age + β₂Age²^{+ β}₃Age³+ ε. What regression equation is obtained under this restriction?

Question

Thirty employed single individuals were randomly selected to examine the relationship between their age (Age) and their credit card debt (Debt) expressed as a percentage of their annual income. Three polynomial models were applied and the following table summarizes Excel's regression results.

Suppose the restriction β₃ = 0 is imposed on the cubic regression model Debt = β₀+ β₁Age + β₂Age²^{+ β}₃Age³+ ε. What regression equation is obtained under this restriction?

Quizplus · Accepted Answer

The Answer of Thirty employed single individuals were randomly selected to examine the relationship between their age (Age) and their credit card debt (Debt) expressed as a percentage of their annual income. Three polynomial models were applied and the following table summarizes Excel's regression results. Suppose the restriction β₃ = 0 is imposed on the cubic regression model Debt = β₀+ β₁Age + β₂Age²^{+ β}₃Age³+ ε. What regression equation is obtained under this restriction?

Thirty Employed Single Individuals Were Randomly Selected to Examine the Relationship