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Exhibit 13-8
The following estimated regression model was developed relating yearly income Y in $1,000s) of 30 individuals with their age X1) and their gender X2) 0 if male and 1 if female) .
=30+0.7X1+3X2
Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 13-8. From the above function, it can be said that the expected yearly income of
Sum of Squares
A statistical measure of the dispersion of observation values given by the sum of the squared differences from the mean.
Error
The difference between a measured or observed value and the true, specified, or theoretically correct value.
Coefficient of Determination
A statistical measure, typically denoted as R², that represents the proportion of the variance in the dependent variable that is predictable from the independent variables.
Data Points
Individual measurements or observations collected during an experiment or survey.
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