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A Statistics Professor Investigated Some of the Factors That Affect y=β0+β1x1+β2x2+β3x3+εy = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon

question 16

Essay

A statistics professor investigated some of the factors that affect an individual student's final grade in his or her course. He proposed the multiple regression model: y=β0+β1x1+β2x2+β3x3+εy = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon .
Where:
y = final mark (out of 100). x1x _ { 1 } = number of lectures skipped. x2x _ { 2 } = number of late assignments. x3x _ { 3 } = mid-term test mark (out of 100).
The professor recorded the data for 50 randomly selected students. The computer output is shown below.
THE REGRESSION EQUATION IS
ŷ = 41.63.18x11.17x2+.63x341.6 - 3.18 x _ { 1 } - 1.17 x _ { 2 } + .63 x _ { 3 }  Predictor  Coef  StDev T Constant 41.617.82.337x13.181.661.916x21.171.131.035x30.630.134.846\begin{array} { | c | c c c | } \hline \text { Predictor } & \text { Coef } & \text { StDev } & \mathrm { T } \\\hline \text { Constant } & 41.6 & 17.8 & 2.337 \\x _ { 1 } & - 3.18 & 1.66 & - 1.916 \\x _ { 2 } & - 1.17 & 1.13 & - 1.035 \\x _ { 3 } & 0.63 & 0.13 & 4.846 \\\hline\end{array} se = 13.74, R2 = 30.0%.  ANALYSIS OF VARIANCE  Source of Variation df SS  MS  F  Regression 337161238.6676.558 Error 468688188.870 Total 4912404\begin{array}{l}\text { ANALYSIS OF VARIANCE }\\\begin{array} { | l | c c c c | } \hline \text { Source of Variation } & \mathrm { df } & \text { SS } & \text { MS } & \text { F } \\\hline \text { Regression } & 3 & 3716 & 1238.667 & 6.558 \\\text { Error } & 46 & 8688 & 188.870 & \\\hline \text { Total } & 49 & 12404 & & \\\hline\end{array}\end{array} Interpret the coefficients β^1\hat { \beta } _ { 1 } and β^3\hat { \beta } _ { 3 } .


Definitions:

Expected Shortage

The anticipated deficiency in quantity or supply of a product or resource relative to the expected demand for that product or resource.

Safety Inventory

Additional stock kept to mitigate the risk of stockouts and production halts due to fluctuations in demand and supply chain disruptions.

Supply Chain Manager

An expert in charge of supervising and directing the strategy and operations of a corporation's supply chain and logistics.

Replenishment Cycle

The recurring process of restocking sold-out or used products in inventory to maintain a desired stock level.

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