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The Model E(y)=β0+β1x1+β2x2E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 }

question 73

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The model E(y) =β0+β1x1+β2x2E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } was fit to a set of data.
A partial printout for the analysis follows:
 The model  E ( y )  = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 }  was fit to a set of data. A partial printout for the analysis follows:    Interpret the value of the residual when  x _ { 1 } = 7,781  and  x _ { 2 } = 644 . A)  The predicted  \hat { y }  exceeds the observed value of  y  by  8.468 . B)  Since the residual is not 0 , the model is not useful for predicting  y . C)  The predicted  \hat { y }  is  8.468  less than the observed value of  y . D)  Since the residual is negative, there is evidence of a negative linear relationship between  y  and at least one of the two independent variables.

Interpret the value of the residual when x1=7,781x _ { 1 } = 7,781 and x2=644x _ { 2 } = 644 .


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