Fox Module 10: Advanced multiple regression HW


Fox Module 10: Advanced multiple regression HW

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NEAS
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Module 10: Advanced multiple regression

(The attached PDF file has better formatting.)

Homework assignment: Two correlated independent variables

Do this homework assignment after module 12, which gives the equations for the standard errors of the least squares estimators.

We regress the Y values on the X1 and X2 values in the table below.

X1

X2

Y

X1

X2

Y

1

1

1.016

6

8

-1.076

2

6

-3.429

7

4

3.461

3

2

0.049

8

9

-2.525

4

7

-3.099

9

5

4.195

5

3

0.359

10

10

-0.746

What is the correlation of X1 and X2?

What is the least squares estimator of

á?

What is the least squares estimator of

â1, the coefficient of X1?

What is the least squares estimator of

â2, the coefficient of X2?

What is the standard error of the least squares estimator of

â1, the coefficient of X1?

What is the standard error of the least squares estimator of

â2, the coefficient of X2?

Show the formulas and the computations. You can check your work with Excel or other statistical software.


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Edited 13 Years Ago by NEAS
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55Dollar5DollarFootLong
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After reading all the posts, I think I really need some help.

I am getting different answers than everybody that has posted on here. Please tell me what I am doing wrong.

For part A

First I solve for a Ybar by taking the average of all ten Yi;s. Ybar = -0.1795
Then I solve for a TSS by subtracting the Ybar from all Yi's...squaring the ten results and then summing all ten results. TSS = 59.86964

[NEAS: The TSS is correct.]

To get the RegSS you need the fitted Y's. To get the fitted Y's you need the A, B1, & B2 (which I solve for in parts B through D). Assuming my parts B-D are correct here is how I calculated my RegSS: I used the equation Fitted Y = A + B1 * X1i + B2 * X2i. I plugged in all combinations of X1 & X2, subtracted the Ybar from all the fitted Y's, squared the results and added up all ten results. RegSS = 51.68978

[NEAS: RegSS is 52.16; RSS is 7.709.]

To get the RSS, I subtracted the RegSS from the TSS. RSS = 8.179862

To get the Rsquared I Used the equation RegSS/TSS Rsquared = 0.8633872
To get the R aka the Correlation, I take the square root for R squared. Correlation = 0.929178

[NEAS: R squared is 0.8712. the correlation needed for the standard errors is between the two independant variables, not the square root of the R sqaured.]

For Parts B-D I needed the following Variables
sum of (X1i * Yi) = 11.57
sum of (X2i * Yi) = -44.05
Sum of (X1i * X2i) = 355
Sum of X1i squared = 385
Sum of X2i squared = 385
Xbar = 5.5
Ybar = 5.5

For B1 & B2 I used the equations on the top of page 88

B1 = (11.57)(385) - (-44.05)(355)
(385)(385) - (355)(355)

B1 = 0.905054

B2 = (-44.05)(385) - (11.57)(355)
(385)(385) - (355)(355)

B2 = -0.94895

For A I also used the equation on the top of page 88

A = Ybar - B1 X1bar - B2 X2bar
-0.1795 - (0.905054)(5.5) - (-0.94895)(5.5)

A = 0.061905

What am I doing wrong?


Edited 12 Years Ago by NEAS
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