Given here is Excel output for a multiple regression model that was developed to predict y from two independent variables, x1 and x2. Variable x2 is a dummy variable. Discuss the strength of the multiple regression model on the basis of the output. Focus on the contribution of the dummy variable. Plot x1 and y with x2 as 0, and then plot x1 and y with x2 as 1.

Compare the two lines and discuss thedifferences.

Transcribed Image Text:

SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.623 0.388 0.341 11.744 29 ANOVA Significance df MS Regression 2 Residua 26 28 2270.11 3585.75 5855.86 1135.05 137.91 8.23 0.0017 Total P-value 6.3800 6.4 0.00000076 0.4316 0.0004 Coefficients Standard Error t Stat Intercept 41.225 1.081 -18.404 1.3530 0.80 4.5470 -4.05