The estimated regression equation for a model involving two

The estimated regression equation for a model involving two independent variables and 10 observations follows.

= 26.7321 + 0.4060x₁ + 0.5741x₂

Interpret b₁ and b₂ in this estimated regression equation.

b₁
y changes by 0.4060 when x1 increases by 1 unit and x2 stays the same (Correct)

b₂
y changes by 0.5741 when x1 increases by 1 unit and x2 stays the same (Correct)

Predict y when x₁ = 180 and x₂ = 310 (to 3 decimals).

Solution

Estimate y when x1 = 180 and x2 = 310

Answer:

We simply plug in the values for x1 and x2 into the estimated equation.

= 26.7321 + (0.4060)x1 + (0.5741)x2

= 26.7321 + (0.4060)*180 + (0.5741)*310