1)Suppose you obtain the following regression model, E[y]=94+25*x. What is the i
ID: 1135403 • Letter: 1
Question
1)Suppose you obtain the following regression model, E[y]=94+25*x. What is the impact of a 24 unit change of x on the expected value of y?
2) Suppose you obtain the following regression model, E[y]=60+83*x +66*x^2. What is the impact of a 52 unit change of x on the expected value of y when x is at its mean of 65?
3) Suppose you obtain the following regression model, E[y]=5+48*x1 +88*x1*x2. What is the impact of a 9 unit change of x1 on the expected value of y when x2 is at its mean of 76?
4) Suppose you obtain the following regression model, E[ln(y)]=36+0.75*ln(x1). What is the impact of a 100% change on y (in terms of percent, not decimal)?
Explanation / Answer
Answer:- (1) Regression model : E[y]=94+25*x
If x changes by 24 unit then expected value of y will be E[y] = 94 + 25*24 = 694.
Answer:-(2) regression model, E[y]=60+83*x +66*x^2
If x changes by 52 unit then expected value of y will be E[y] = 60+83*52 + 66*52^2 = 1,82,840
Answer:-(30 ) regression model, E[y]=5+48*x1 +88*x1*x2
If x1 changes by 9 unit and x2 is 76 then, E[y] = 5+48*9+88*9*76 = 60,629
Answer:-(4) regression model, E[ln(y)]=36+0.75*ln(x1), the Y changes by 75% on average.
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