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telo118 [61]
3 years ago
11

For the multiple regression model Y with hat on top equals 40 plus 15 X subscript 1 minus 10 X subscript 2 plus 5 X subscript 3,

if X subscript 1 and X subscript 2 were to decrease by 4 units, holding X subscript 3 constant, the value of Y would be expected to
Mathematics
1 answer:
kvasek [131]3 years ago
6 0

Answer:

When x1 and x2 decrease 4 units, y decreases by 20 units

Step-by-step explanation:

The regression model is

y=40+15x_1-10x_2+5x_3

We have to calculate y for a decrease of 4 units in x1 and x2. For this we have to calculate the variation of y in function of x1 and x2.

As it is a linear regression model, we have:

\Delta y=15\Delta x_1-10\Delta x_2

For a variation in 4 units of x1 and x2, we have

\Delta y=15\Delta x_1-10\Delta x_2\\\\\Delta y=15(-4)-10(-4)=-60+40=-20

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