TABLE 14-11 A Weight-Loss Clinic Wants to Use Regression Analysis to Build

question 123

Multiple Choice

TABLE 14-11
A weight-loss clinic wants to use regression analysis to build a model for weight-loss of a client (measured in pounds) . Two variables thought to affect weight-loss are client's length of time on the weight-loss program and time of session. These variables are described below:
Y = Weight-loss (in pounds)
X₁ = Length of time in weight-loss program (in months)
X₂ = 1 if morning session, 0 if not
X₃ = 1 if afternoon session, 0 if not (Base level = evening session)
Data for 12 clients on a weight-loss program at the clinic were collected and used to fit the interaction model:
Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₁X₂ + β₅X₁X₂ + ε
Partial output from Microsoft Excel follows:

-Referring to Table 14-11, in terms of the βs in the model, give the mean change in weight-loss (Y) for every 1 month increase in time in the program (X₁) when attending the afternoon session.

• A) β₁ + β₄
• B) β₁ + β₅
• C) β₁
• D) β₄ + β₅

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Definitions:

Interest Capitalization

The addition of accrued interest to the principal balance of a loan, increasing the total amount owed.

Interest Capitalization

The process of adding accrued interest to the principal balance of a loan, thereby increasing the total amount of interest to be paid over the life of the loan.

Construction Loan

A short-term loan used to finance the building of a property or real estate project, usually converting to a long-term loan after completion.

Notes Payable

Financial obligations or loans represented by a promissory note that a company needs to pay back.