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Regression Coefficients

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Regression Coefficients


1. The problem involves interpreting regression coefficients from a table related to warehouse efficiency. 2. Each variable (A, B-med, B-high, C, D, E-low, E-med, F) has an associated estimate representing its effect on the dependent variable. 3. The intercept is -1.5, which is the baseline value when all variables are zero. 4. For example, variable A has an estimate of -0.0816, meaning it decreases the dependent variable by 0.0816 units when it increases by one unit, holding other variables constant. 5. Similarly, B-med and B-high have positive estimates (0.365 and 0.673), indicating positive contributions. 6. Variables C and F also have positive effects (0.043 and 0.406), while D, E-low, and E-med have negative effects (-0.0713, -0.0416, -0.0236). 7. These coefficients can be used to form a regression equation: $$y = -1.5 - 0.0816A + 0.365B_{med} + 0.673B_{high} + 0.043C - 0.0713D - 0.0416E_{low} - 0.0236E_{med} + 0.406F$$ 8. This equation models warehouse efficiency based on the variables. 9. Understanding these coefficients helps in predicting and improving efficiency by focusing on variables with significant positive or negative impacts.