Regression

jvdan1

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Oct 13, 2017
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Screen Shot 2017-10-14 at 2.19.30 pm.jpg

I have been asked to write down the regression equation for models 1 and 2.

The regression equation I assume I need to use is y=a+bx

I know that y=dependant variable, which in this case is tourism demand. x= independent variable = LCC entrance.

I am unsure as to what "a" and "b" are?

I would really appreciate any help with this! :)
 
The regression equation y = a + bx represents the line that best fits a set of (x,y) data points. You can google keywords scatterplot regression line best fit to see examples and images.

In the equation for this line, symbol b is a constant that represents the rate at which y is changing, with respect to increasing x by 1 unit. Symbol a is a constant that represents the value of y when x is zero. Graphically speaking, b is the slope of the line, and a is the y-intercept of the line (that is, the line's vertical positioning on an xy-coordinate grid).

The chart you posted seems to indicate that someone has already done the regression (i.e., they have already determined the values of a and b) because it is titled regression results, but I do not understand the given numbers.

I do see a number for each model in the chart labeled "Constant", but it's not clear to me that it is the value of a or b. As I do not understand the context of the data, I cannot recognize any rate.

The numbers inside parentheses are noted as errors; it seems strange that the error listed for each "Constant" is about 2 to 2.5 times larger than the value itself.

I regret that I do not understand the given scenario.
 
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