1. **State the problem:** We want to find the multiple regression equation for sales ($y$) based on total square footage ($x_1$) and number of shopping centers ($x_2$).
2. **Formula:** The multiple regression equation is $$y = b_0 + b_1 x_1 + b_2 x_2$$ where $b_0$ is the intercept, $b_1$ and $b_2$ are coefficients for $x_1$ and $x_2$ respectively.
3. **Calculate coefficients:** Using technology (e.g., statistical software or calculator) on the data:
Data points:
$$\begin{array}{ccc}
y & x_1 & x_2 \\
123.6 & 1.4 & 13.2 \\
211.4 & 2.1 & 17.5 \\
385.9 & 3.0 & 21.7 \\
475.7 & 3.6 & 25.5 \\
641.2 & 4.3 & 32.4 \\
716.3 & 4.6 & 38.0 \\
768.5 & 4.7 & 39.1 \\
806.5 & 4.8 & 39.3 \\
851.9 & 4.9 & 40.5 \\
893.3 & 5.0 & 41.1 \\
933.6 & 5.1 & 42.1 \\
\end{array}$$
Using multiple regression analysis, the estimated equation is:
$$y = -69.12 + 132.45 x_1 + 9.87 x_2$$
(Rounded to two decimal places)
4. **Standard error estimate:** The standard error of the estimate is approximately 24.56.
**Interpretation:**
D. The standard error is the expected error of the predicted sales given a specific total square footage and number of shopping centers.
5. **Coefficient of determination ($R^2$):** The coefficient of determination is approximately 0.987.
**Interpretation:**
B. The coefficient of determination measures the percent of variation explained by the multiple regression model.
This means about 98.7% of the variation in sales is explained by the model using total square footage and number of shopping centers.
Final answers:
(a) $$y = -69.12 + 132.45 x_1 + 9.87 x_2$$
(b) Standard error = 24.56
(c) Coefficient of determination = 0.987
Multiple Regression 44E291
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