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Subject 5. Predicting the Dependent Variable in a Multiple Regression Model PDF Download
A multiple regression analysis yields the equation y-hatt = -3.8 + 2.34 X1t + 7.52 X2t. If

  • The value of the X1t independent variable is 6, and
  • The value of the X2t independent variable is 2.

What is the predicted value of the dependent variable?

Answer: The predicted value of the dependent variable is -3.8 + 2.34 x 6 + 7.52 x 2 = -3.8 + 14.04 + 15.04 = 25.28.

Learning Outcome Statements

e. calculate and interpret a predicted value for the dependent variable, given an estimated regression model and assumed values for the independent variables;

CFA® 2023 Level I Curriculum, Volume 1, Module 2

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