mreg_coef In a regression analysis the following SPSS output table is produced.

Question

mreg_coef In a regression analysis the following SPSS output table is produced. The purpose of this analysis is to build a prediction model for predicting the survival size by using percentage of beds that are for-profit hospital (in the recorded data 0.34 means 34%) and the state population in thousand (in the recorded data 5,000 means 5,000 thousand). Which of the following statements is(are) correct? [There may be more than one correct answer.] If both predictor variables are significant, the predicted survival size for a state with a population of 6,000 thousand and 10% of the beds that are for-profit hospital would be 16.93. Both variables are insignificant factors for predicting the survival size. If both predictor variables are significant, the predicted average survival size for a state with a population of 6,000 thousand and 10% of the beds that are for-profit hospital would be 373.91. There is strong collinearity since the VIF is less than 10. As the percentage of beds that are for-profit hospital increases the survival size decreases.

B VIF constant 356.998 percentage of beds that are for-profit hospital -667.738 1.158 state population 1.395E-02 1.158

Explanation / Answer

So first to answer this you should know what VIF is. It is Variance Inflation Factor. It is a multicollinerity factor. If you want to analyze the regression equation you must know the VIF of all the independent variables and remove the variables which have >=10 VIF (indicates 90% of covariance with the other variable) since here in the anaylsis provided we do not have VIF for any varible >=10 and so we can say that both the variables are significant.

Now coming to the equation:

survival size = (-667.738)*percentage of beds that are for-profit hospital + 1.395E-02 *state population

so., by taking population =6000 & percentage of beds that are for-profit hospital=0.1 we get

survival size = (-667.738)*0.1 + 1.395E-02 *6000 = 16.93

and so here we can come to a conclusion that

If both predictor variables are significant, the predicted survival size for a state with a population of 6,000 thousand and 10% of the beds that are for-profit hospital would be 16.93. &

Both variables are insignificant factors for predicting the survival size.

Hope the above explaination has helped you in understanding the problem Pls upvote the ans if it has really helped you. Good Luck!!

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