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Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich
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Consider relating E(y) to two quantitative

Chapter 12, Problem 140SE

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QUESTION:

Problem 140SE

Consider relating E(y) to two quantitative independentvariables x1 and x2.

a. Write a first-order model for E(y).

b. Write a complete second-order model for E(y).

Questions & Answers

QUESTION:

Problem 140SE

Consider relating E(y) to two quantitative independentvariables x1 and x2.

a. Write a first-order model for E(y).

b. Write a complete second-order model for E(y).

ANSWER:

Step 1 of 2

We have two quantitative independent variables  and  in the E (y) .

a)  The first order model in two quantitative independent variables is for y

     is

Where

      and  Are quantitative independent variables

      Is the change in y for every one unit change in variables  holding  as ?xed

      Is the change in y for every one unit change in variables  holding  as ?xed

      is the fixed effect coefficient.

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