Question: 21. The following estimated regression equation was developed for a model involving two independent variables. y 5 40.7 1 8.63x1 1 2.71x2 After x2 was

21. The following estimated regression equation was developed for a model involving two independent variables.

yˆ 5 40.7 1 8.63x1 1 2.71x2 After x2 was dropped from the model, the least squares method was used to obtain an estimated regression equation involving only x1 as an independent variable.

yˆ 5 42.0 1 9.01x1

a. Give an interpretation of the coefficient of x1 in both models.

b. Could multicollinearity explain why the coefficient of x1 differs in the two models? If so, how?

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