Reference no: EM13284124
Question 1. The profit, y, at plants is being examined as a function of plant location and plant age. The model being considered is E(Y)---- Bo + Bi + B2X2 133X1X2
where X1 = plant age and X2 = 0 if foreign plant
1 if domestic plant.
Data were collected for 32 plants. The data were used to fit the model and the SAS printout of the multiple regression analysis is shown below.
(a) Give the least squares estimated prediction equation.
(b) What is the value of MSE S2, SSE?
(c) If we were testing Ho: what is the calculated
t value that we should use?
(d) Find the predicted profit for a 4 yr old domestic plant.
(e) Test to see if the model is useful. Use alpha=.01.
(f) Consider the model E(Y)=B0 + 131X1. This model was fit to the n = 32 data points and resulted in SSE = 70662 Test (by comparing the two models) to see if there sufficient evidence that plant location X2 (domestic or foreign) is a useful predictor of profit Y? Use alpha=.05. Clearly state the hypotheses & conclusion.
SOURCE DF SUM OF SQUARES
Regression 3 426000
ERROR 28 C2:17757.) R-Square=.75
Question 2: Develop a simple regression model. to redict models earning based on 1.
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