Question
Interpret the final result and Draw conclusions and recommendations for the following information using the below linear regression analysis information: a =2238.383423, b = -215.6952394,
Interpret the final result and Draw conclusions and recommendations for the following information using the below linear regression analysis information:
a =2238.383423, b = -215.6952394, c = -115.7793199, and d = 0.041157311.
The approximate regression equation will be:
QD =2238.383423-215.6952394* P-115.7793199 *R +0.041157311* M
Explanation:
The demand Equation is given by:
Demand equation: QD = a + b P + c PR + d M
Where QD is the quantity demanded for this good, P is the price per unit, PR is the price of the related good(s) in consumption (substitute or complement) and M is consumer income.
The results obtained from multiple linear Regression model is:
Regression Statistics | |
Multiple R | 0.980212113 |
R Square | 0.960815786 |
Adjusted R Square | 0.95611368 |
Standard Error | 104.7293523 |
Observations | 29 |
The R-square and the adjusted R-square value is 0.960815786 and 0.95611368. This signifies that the regression model has fitted the data.
ANOVA | |||||
df | SS | MS | F | Significance F | |
Regression | 3 | 6723661.421 | 2241220.474 | 204.3373447 | 1.04584E-17 |
Residual | 25 | 274205.931 | 10968.23724 | ||
Total | 28 | 6997867.352 |
From the ANOVA Table, it can be observed that the F-score is 204.3373447.
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
Intercept | 2238.383423 | 222.7644461 | 10.0482077 | 2.90956E-10 | 1779.591458 | 2697.175 | 1779.59146 | 2697.175388 |
Price of American Cheese (P) | -215.6952394 | 112.8682107 | -1.911036227 | 0.067531187 | -448.1516706 | 16.76119 | -448.151671 | 16.7611918 |
Price of ham (PR) | -115.7793199 | 43.3386963 | -2.671499833 | 0.013092455 | -205.0370358 | -26.5216 | -205.037036 | -26.52160409 |
Average Income (M) | 0.041157311 | 0.00400409 | 10.27881639 | 1.83539E-10 | 0.032910732 | 0.049404 | 0.03291073 | 0.04940389 |
From the above table, it can be observed that the values of a =2238.383423, b = -215.6952394, c = -115.7793199, and d = 0.041157311.
Therefore, the approximate regression equation will be:
QD =2238.383423-215.6952394* P-115.7793199 *R +0.041157311* M
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