Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female).
$\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. The yearly income of a 24-year-old male individual is
A) $13.80
B) $13,800
C) $46,800
D) $49,800

Question

Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female).
 $\hat { Y }$ =30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. The yearly income of a 24-year-old male individual is
A) $13.80
B) $13,800
C) $46,800
D) $49,800

Quizplus · Accepted Answer

The regression equation is $\hat{Y} = 30 + 0.7X1 + 3X2$. For a 24-year-old male (X1 = 24, X2 = 0), $\hat{Y} = 30 + 0.7(24) + 3(0) = 30 + 16.8 = 46.8$. Since Y is in $1,000s, the income is $46,800.

Exhibit 13-8 the Following Estimated Regression Model Was Developed Relating Y^\hat { Y }Y^

Exhibit 13-8
the Following Estimated Regression Model Was Developed Relating $\hat { Y }$