multiple regression-sport-joint signif_08-10

# multiple regression-sport-joint signif_08-10 - Slide # 1...

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Unformatted text preview: Slide # 1 The Multiple Regression Model y = β 1 + β 2 x2 + β 3 x3 + β 4 x4 + &#0; Slide # 2 q Intentionally left blank Slide # 3 Review: Using p-values Reject or Not Reject ? Recall y = α + β 1 x1 + β 2 x2 + β 3 x3 + * ALWAYS… F-test - ALL IVS JOINTLY t-test (k = 1, 2 or 3) - ONE IV AT A Rule: Reject Ho: if p-value < .05 Ho: β 1 = β 2 = β 3 = 0 Ho: β κ = Slide # 4 Review: Using p-values Reject or Not Reject ? +-------------------------------------------------------------------------------------------------------------+ | Ordinary least squares regression | | Dep. var. = Price Premium | | Fit: R-squared= .885860 | | Model test: F = 117.97, Prob value = .00000 | +---------+--------------+----------------+--------+---------+ |Variable | Coefficient | Standard Error |t-ratio | P-VALUE | +---------+--------------+----------------+--------+---------+ Constant .4294642901 .46221765 .929 . 3558 AWARE 1.514544228 .70183184 2.158 . 0341 COMMIT -.1683122506 .31175796 -.540 . 5909 AWARESQ .1457635606 .39178678 .372 . 7109 COMMITSQ -.2635215171 .52694665E-01 -5.001 . 0000 Slide # 5 q Intentionally left blank Slide # 6 I. Introduction q A. Definition v 1. Previously: simple two-variable model v 2. Now: more realistic v 3. Multiple regression model v 4. Multiple IVs (X1, X2, . . . Xk) Slide # 7 Introduction (cont.) q B. The Model v 1. Y = β 1X1 + β 2X2 + β 3X3 + . . . + β kXk + μ v 2. NOTE: o a) β 1 is intercept o b) X1 is constant term (column of 1's ) v 3. Y = β 1 + β 2X2 + β 3X3 + . . . + β kXk + μ v 4. Including intercept , K coefficients to estimate Slide # 8 X1 is constant term (column of 1's) O bj1 0 1 Slide # 9 Who Uses This • The fuel economy of engine designs can be predicted by multiple regression models . • The Building Owner Management Association of Chicago uses a multiple regression model to predict downtown commercial rental rates. Their report not only presents the multiple regression coefficients but also the t-ratio of each coefficient. (Source: Professor John McDonald Department of Economics, University of Illinois at Chicago.) O bj1 0 2 Slide # 10 Who Uses This • COLORADO STATE HURRICANE FORECAST TEAM SEES INCREASED HURRICANE ACTIVITY • Colorado State Press Release: May 23, 2002 • FORT COLLINS-After six years that set a record for Atlantic Basin tropical storms and hurricane activity, William Gray and his associates at Colorado State University are calling for a season slightly above the long-term average. For 2002, they forecast twelve named storms, seven hurricanes and three major (Saffir- Simpson category 3-4-5) hurricanes....
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## This note was uploaded on 09/09/2011 for the course ECON 6416 taught by Professor Richardhofler during the Fall '11 term at University of Central Florida.

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multiple regression-sport-joint signif_08-10 - Slide # 1...

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