PlanFinan is a financial planning organisation. The data in PlanFinan1.xlsx was obtained from PlanFinan’s database of a particular group of clients. Use Excel to obtain a multiple linear regression of the variable "Savings" (Y) on the variables "Cars" (X1) and “Salary” (X2). According to the regression output, the predicted amount of savings is Answer Question 9[input] thousand dollars, if the car value is $55,000 and the salary is $103,000. (Please round your answer to 3 decimal places)

Question

BlackTom AI · Accepted Answer

The task presents a regression problem where the predicted Savings (Y) depends on Cars (X1) and Salary (X2). The question asks for the predicted amount given Cars = 55,000 and Salary = 103,000, rounded to 3 decimal places.

Option analysis:
- Option: Cannot answer. The necessary PlanFinan1.xlsx data file or regression coefficients are not available.
  This statement correctly identifies a fundamental obstacle: without the actual dataset PlanFinan1.xlsx and the resulting regression output (the intercept and coefficients for X1 and X2), it is impossible to compute the predicted value using the regression equation. A multiple linear regression prediction requires the form: Ŷ = β0 + β1*X1 + β2*X2, where β0, β1, and β2 come from the regression analysis. If these values are not provided, any computed prediction would be speculative.

Why this option is correct in this context:
- No regression coefficients are supplied in the prompt. The calculation hinges on those coefficients, so the right course is to acknowledge the data/coefficients are unavailable.

Why other potential options (if they existed) would be incorrect:
- If there were any option claiming a numeric prediction could be computed without coefficients, that would be flawed logic, because without β0, β1, β2 we cannot determine Ŷ for the given X1 and X2.
- If there were an option stating a specific number like 'X thousand dollars', that would misrepresent the requirement for the model’s parameters and would be unfounded without the data file.

In summary, given that the regression output and the dataset are not provided, the only appropriate conclusion is that the prediction cannot be made from the information given. Therefore, the provided answer choice correctly reflects the situation.

ETX5900 - S2 2025 Take Home Quiz Week 10 (due on 17th of October)

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