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Explain why stepwise regression is used. What is its value in the model-building process?

Short Answer

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Step-wise regression is used to streamline the number of variables used in the model. To build a model with large number of independent variables is very difficult because of the interpretation of multivariable terms and interactions in the model. Therefore, step-wise regression analysis is used to streamline and select the number of variable which explain the data in the best way.

Step by step solution

01

Step wise regression

Step-wise regression is used to streamline the number of variables used in the model.

02

Value in model-building process

To build a model with large number of independent variables is very difficult because of the interpretation of multivariable terms and interactions in the model. Therefore, step-wise regression analysis is used to streamline and select the number of variable which explain the data in the best way.

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Most popular questions from this chapter

Question: Consumer behavior while waiting in line. The Journal of Consumer Research (November 2003) published a study of consumer behavior while waiting in a queue. A sample of n = 148 college students was asked to imagine that they were waiting in line at a post office to mail a package and that the estimated waiting time is 10 minutes or less. After a 10-minute wait, students were asked about their level of negative feelings (annoyed, anxious) on a scale of 1 (strongly disagree) to 9 (strongly agree). Before answering, however, the students were informed about how many people were ahead of them and behind them in the line. The researchers used regression to relate negative feelings score (y) to number ahead in line (x1) and number behind in line (x2).

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Write a model that relates E(y) to two independent variablesโ€”one quantitative and one qualitative at four levels. Construct a model that allows the associated response curves to be second-order but does not allow for interaction between the two independent variables.

Suppose the mean value E(y) of a response y is related to the quantitative independent variables x1and x2

E(y)=2+x1-3x2-x1x2

a) Identify and interpret the slope forx2

b) Plot the linear relationship between E(y) andx2for role="math" localid="1649796003444" x1=0,1,2, whererole="math" localid="1649796025582" 1โ‰คx2โ‰ค3

c) How would you interpret the estimated slopes?

d) Use the lines you plotted in part b to determine the changes in E(y) for eachrole="math" localid="1649796051071" x1=0,1,2.

e) Use your graph from part b to determine how much E(y) changes whenrole="math" localid="1649796075921" 3โ‰คx1โ‰ค5androle="math" localid="1649796084395" 1โ‰คx2โ‰ค3.

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