Equation
the Regression Equation $\hat{ Y }$ = 4 + 15x₁ + 2

question 33

Essay

Equation
The regression equation, $\hat{ Y }$ = 4 + 1.5x₁ + 2.5x₂ has been fitted to 25 data points.The means of x₁ and x₂ are 30 and 46,respectively.The sum of the squared differences between observed and predicted values of y has been calculated as SSE = 175,and the sum of the squared differences between y values and mean of y is SST = 525.
-What is the approximate 95% prediction interval for an individual y whenever x₁ = 20 and x₂ = 25?

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Definitions:

Fixed Cost

A type of business expense that does not change with the level of production or sales, including costs like rent, salaries, and insurance premiums.

Variable Cost

Costs that fluctuate directly with changes in production or sales volume.

Product Costs

The costs that are directly associated with the manufacturing of products, including direct labor, materials, and manufacturing overhead.

Variable Cost

Expenses that change in proportion to the activity of a business, such as raw materials and direct labor costs.