Lesson 9: Regression Output Interpretation

February 28, 2016 at 11:11 am  •  Posted in s16-busad360 by  •  2 Comments

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Mon, Feb 29


  • Multiple Regression


  • Regression Output Interpretation
    • From Last Time
      • R-Squared
      • Regression Equation Coefficients
    • New Stuff
      • t-Stat and p-values for Independent Variables significance
      • F statistic and p-value (Significance F) for Overall Model significance
      • ANOVA table Sum of Squares values (SSR, SSE, SSyy)
        • SSR = b1^2*SSxx
        • SSE = Sum of Squares residuals
        • SSyy = Sum of Squares of y


  • Read Demonstration Problem 13.1 on p. 528-529
  • Use the Regression Summary Output table on p. 529 to answer these questions.
    • What is the R-Squared value?
    • How many observations are in the data set being analyzed?
    • Name the variables and their corresponding coefficients.
    • What are the t-stat values for each independent variable?
    • What are the p-values for each independent variable?
    • Which variable is the most significant?
    • What is the F statistic for the model?
    • What is the significance level of the F statistic?
    • What is SSE, the Sum of Squares Error?
    • What is SSyy, the Sum of Squares for y?
    • What is SSR, the Sum of Squares Regression?


  • Read p. 541-543 Interpreting Multiple Regression Output
  • Download Excel data provided as a companion to the textbook: black_7e_excel_database
  • Complete the “Analyzing the Database” Problems 1-4 on p. 549 
  • Don’t worry about the discussion questions. Instead, produce the models specified and then answer the same “Activity” questions above for each resulting set of Regression Output.

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