Math Problem Statement
A multiple regression analysis showed the following results of the individual independent variables. X4 is a qualitative variable (i.e., it takes on the value 0 or 1). If X4 is equal to one, what is the variable's effect on the dependent variable?
Group of answer choices
The dependent variable will increase by 9.976 units.
The dependent variable will increase by 2*9.976 units.
The dependent variable will decrease by 9.976 units.
The dependent variable will not be affected because the coefficient on X4 cannot be said to be statistically different than zero
Solution
Based on the provided multiple regression results, the coefficient of is , with a p-value of , indicating statistical significance (since ). When , its effect on the dependent variable is to decrease it by units because the coefficient is negative. Therefore, the correct answer is:
The dependent variable will decrease by 9.976 units.
Would you like a detailed breakdown or have additional questions?
Here are some follow-up questions for further exploration:
- What does the statistical significance of imply about its role in the model?
- How does the standard error influence the interpretation of 's coefficient?
- What would the interpretation be if had a p-value greater than 0.05?
- How do the effects of the other variables () compare to ?
- What steps should be taken to evaluate the overall fit of this regression model?
Tip: Always check the p-value to determine the statistical significance of a coefficient before interpreting its effect.
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Math Problem Analysis
Mathematical Concepts
Multiple Regression Analysis
Interpreting Regression Coefficients
Statistical Significance
Formulas
Effect of qualitative variable = Coefficient of variable * value of variable
t-stat = Coefficient / Standard Error
Theorems
Hypothesis Testing for Regression Coefficients
Suitable Grade Level
Undergraduate (Statistics or Data Analysis)
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