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Multiple Linear Regression Exercise

This document contains two multiple linear regression exercises: 1) The first exercise calculates regression coefficients and equations to predict sales based on advertising and promotion expenditures. It estimates sales of 825.567 with advertising of 200 and promotion of 100. 2) The second exercise calculates regression coefficients and equations to predict salary based on experience and test score. It estimates a salary of 39.1878 with experience of 9 and test score of 90.

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LYNN VILLACORTA
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70 views4 pages

Multiple Linear Regression Exercise

This document contains two multiple linear regression exercises: 1) The first exercise calculates regression coefficients and equations to predict sales based on advertising and promotion expenditures. It estimates sales of 825.567 with advertising of 200 and promotion of 100. 2) The second exercise calculates regression coefficients and equations to predict salary based on experience and test score. It estimates a salary of 39.1878 with experience of 9 and test score of 90.

Uploaded by

LYNN VILLACORTA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: Lynn M.

Villacorta Section: FM1

MULTIPLE LINEAR REGRESSION EXERCISE


Solution:https://docs.google.com/spreadsheets/d/14QTwlyFsufpMng6h7kYdHCxF4CywqGrD/edit?usp=sharing&ouid=1117293
55019449085720&rtpof=true&sd=true
1. Given the following dataset:

a. Calculate X12, X22, X1y, X2y and X1X2.

b. Calculate the Regression Sums?


c. What is b0?

b0 is: y – b1X1 – b2X2

b0 =968.5 - (-30.5718863 * 261) - (65.1872761852692* 130.8)

= 421.267

d. What is b1?

b1 is: [(Σx22) (Σx1y) – (Σx1x2) (Σx2y)] / [(Σx12) (Σx22) – (Σx1x2)2]

b1 = ( (15249.6*114399) - (30651*57021)) / ((61614*15249.6) - POWER(30651,2))


= -30.572

e. What is b2?

b2 is: [(Σx12) (Σx2y) – (Σx1x2) (Σx1y)] / [(Σx12) (Σx22) – (Σx1x2)2]

b2 = ((61614 * 57021) - (30651* 114399)) / ((61614* 15249.6) - POWER(30651,2))


= 65.187

f. What is the linear regression equation?

ŷ = 𝑏0 + 𝑏1 ∗ 𝑥1 + 𝑏2 ∗ 𝑥2

ŷ = 421.267 + (−30.572) ∗ 𝑥1 + 65.187 ∗ 𝑥2

ŷ = 421.267 + (−30.572) ∗ 261 + 65.187 ∗ 130.8

g. What is the estimated Sales if advertising expenditure is 200 and promotion expenditure is
100?

Answer: 825.567
2. Given the following dataset:

a. Calculate X12, X22, X1y, X2y and X1X2.

b. Calculate the Regression Sums?

c. What is b0?

b0 is: y – b1X1 – b2X2

b0 = 30.71 - (1.422645156 * 4.8) - (0.44970993 * 84.5)

= -14.1192
d. What is b1?

b1 is: [(Σx22) (Σx1y) – (Σx1x2) (Σx2y)] / [(Σx12) (Σx22) – (Σx1x2)2]

b1 = = ((448.5 * 185.62) - (104 * 349.65)) / ((97.6 * 448.5) - POWER(104, 2))


= 1.423

e. What is b2?

b2 is: [(Σx12) (Σx2y) – (Σx1x2) (Σx1y)] / [(Σx12) (Σx22) – (Σx1x2)2]

b2 = =((97.6*349.65) - (104*185.62)) / ((97.6*448.5) - POWER(104, 2))


= 0.450

f. What is the linear regression equation?

ŷ = 𝑏0 + 𝑏1 ∗ 𝑥1 + 𝑏2 ∗ 𝑥2

ŷ = −14.1192 + 1.423 ∗ 𝑥1 + 0.450 ∗ 𝑥2

ŷ = −14.1192 + (1.423 ∗ 4.8) + 0.450 ∗ 84.5

g. What is the estimated Salary if experience is 9 and test score is 90?

Ans: 39.1878

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