Use Computer Software to Find the Best Multiple Regression Equation $X _ { 1 } , X _ { 2 } , X _ { 3 }$

question 19

Multiple Choice

Use computer software to find the best multiple regression equation to explain the variation in the dependent variable, Y, in terms of the independent variables, $X _ { 1 } , X _ { 2 } , X _ { 3 }$ $$\begin{array} { | c c c c | } \hline Y & X & X & \\15 & 1.2 & 16 & \\15 & 1.2 & 16 & \text { CORRELATION COEFFICIENT } \\17 & 1.0 & 16 & Y / X _ { 1 } = 0.886 \\6 & 0.8 & 9 & Y / X _ { 2 } = 0.965 \\1 & 0.1 & 1 & \\8 & 0.8 & 8 & Y / X _ { 2 } = 0.932 \\10 & 0.8 & 10 & Y / X _ { 2 } , X _ { 1 } = 0.943 \\17 & 1.0 & 16 & \\15 & 1.2 & 15 & \text { COEFFICIENTS OF DETERMINATION } \\11 & 0.7 & 9 & \\18 & 1.4 & 18 & \\16 & 1.0 & 15 & \\10 & 0.8 & 9 & \\7 & 0.5 & 5 & \\18 & 1.1 & 16 & \\\hline\end{array}$$

• A) \(\hat { Y } = 1.38 - 5.53 X _ { 1 } + 1.33 X _ { 2 }\)
• B) \(\hat { Y } = - 0.49 + 14.07 X _ { 1 }\)
• C) \(\hat { Y } = 1.25 - 1.55 X _ { 1 } + 5.79 X _ { 2 }\)
• D) \(\hat { Y } = 0.42 + 0.99 X _ { 2 }\)

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Definitions:

Fixed Costs

Costs that do not change with the number of sales made.

Variable Cost

Expenses that change in proportion to the activity or volume of business, such as materials and labor.

Right Price

The optimal price point for a product or service, taking into account factors such as value to the customer, demand, and competition.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at various price points.