Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Textbook Question
Chapter 15.5, Problem 21E
The following estimated regression equation was developed for a model involving two independent variables.
ŷ = 40.7 + 8.63x1 + 2.71x2
After x2 was dropped from the model, the least squares method was used to obtain an estimated regression equation involving only x1 as an independent variable.
ŷ = 42.0 + 9.01x1
- a. Give an interpretation of the coefficient of x1 in both models.
- b. Could multicollinearity explain why the coefficient of x1 differs in the two models? If so, how?
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Chapter 15 Solutions
Essentials Of Statistics For Business & Economics
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