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

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: 1. The dependent variable will increase by 9.976 units. 2. The dependent variable will increase by 2*9.976 units. 3. The dependent variable will decrease by 9.976 units. 4. 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 X4X_4 is 9.976-9.976, with a p-value of 0.0240.024, indicating statistical significance (since p<0.05p < 0.05). When X4=1X_4 = 1, its effect on the dependent variable is to decrease it by 9.9769.976 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:

  1. What does the statistical significance of X4X_4 imply about its role in the model?
  2. How does the standard error influence the interpretation of X4X_4's coefficient?
  3. What would the interpretation be if X4X_4 had a p-value greater than 0.05?
  4. How do the effects of the other variables (X1,X2,X3X_1, X_2, X_3) compare to X4X_4?
  5. 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)