Given Y-hat = a + b1 X1 + b2 X2 with a = 3, b1 = 4, b2 = -1, X1 = 3, X2 = 6, what is the predicted value of Y?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

Given Y-hat = a + b1 X1 + b2 X2 with a = 3, b1 = 4, b2 = -1, X1 = 3, X2 = 6, what is the predicted value of Y?

Explanation:
The model predicts Y-hat by adding the intercept to the weighted contributions of each predictor: Y-hat = a + b1 X1 + b2 X2. Plugging in the values: 3 + 4*3 + (-1)*6. Compute 4*3 = 12 and (-1)*6 = -6, then 3 + 12 - 6 = 9. So the predicted Y is 9. This shows how each predictor shifts the prediction: X1 adds 4 for each unit, while X2 subtracts 1 for each unit, starting from the baseline of 3.

The model predicts Y-hat by adding the intercept to the weighted contributions of each predictor: Y-hat = a + b1 X1 + b2 X2. Plugging in the values: 3 + 4*3 + (-1)6. Compute 43 = 12 and (-1)*6 = -6, then 3 + 12 - 6 = 9. So the predicted Y is 9. This shows how each predictor shifts the prediction: X1 adds 4 for each unit, while X2 subtracts 1 for each unit, starting from the baseline of 3.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy