The income of farmers depends on various factors. To predict the income of the next year, a study was undertaken and data was gathered considering as many as possible factors that might influence the yearly income. Regression methods are used to create such a prediction function, that is, we want to predict the profit for the next year. The following were determined. X₁ = SIZE - farm size recorded x 1000 hectares X₂ = AGE - how long the farm has been in operation in years X3 = RATIO - the ratio of land size to field size recorded as 0.5, 0.75, 0.8 and 0.9 X4 = METHOD - rotational and non rotational method of planting Ŷ = INCOME - the income per year recorded in x R 1 000 000.00

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.CR: Chapter 2 Review
Problem 111CR: Respiratory Rate Researchers have found that the 95 th percentile the value at which 95% of the data...
icon
Related questions
Question
The income of farmers depends on various factors. To predict the income of the next year, a study was
undertaken and data was gathered considering as many as possible factors that might influence the
yearly income. Regression methods are used to create such a prediction function, that is, we want to
predict the profit for the next year. The following were determined.
X₁ = SIZE - farm size recorded x 1000 hectares
X₂ = AGE - how long the farm has been in operation in years
X3 = RATIO- the ratio of land size to field size recorded as 0.5, 0.75, 0.8 and 0.9
X4 = METHOD - rotational and non rotational method of planting
Ŷ = INCOME the income per year recorded in x R 1 000 000.00
The partial dataset is as follows
INCOME Y
1.3
2.4
3.2
1.5
2.1
a.
C.
Standardized Residual
Sample Quantiles
15 20
1.0-
0.8-
0.6-
04-
02-
0.0-
SIZE X₁
25
5
8
2
1.2
1.5
Predicted
Theoretical Quantiles
45
AGE X₂
2
20
100
1.1. The analyst did some exploratory analysis and below are some of the residual plots he constructed.
Study the plots and answer the questions that follows.
80
50
11
b.
3
RATIO X3
Standardized Residual
0.5
0.75
0.8
0.8
0.75
100 120 140 160 180
METHOD X4
Predicted
Rotational
Rotational
Non-rotational
Rotational
Non-rotational
Diagnose each of the possible problems that are displayed in the plots. If applicable also mention
a formal way to test that it is indeed a problem. Also, when a problem is diagnosed, provide a
possible remedial measure to remedy the problem.
1.2. In order to prepare the dataset for modelling, it became clear that RATIO repeats with similar
values. The analyst decided to regard them also as categorical variables. Amend the dataset fully
in order to build a regression model. Use an ascending order in the coding structure.
Transcribed Image Text:The income of farmers depends on various factors. To predict the income of the next year, a study was undertaken and data was gathered considering as many as possible factors that might influence the yearly income. Regression methods are used to create such a prediction function, that is, we want to predict the profit for the next year. The following were determined. X₁ = SIZE - farm size recorded x 1000 hectares X₂ = AGE - how long the farm has been in operation in years X3 = RATIO- the ratio of land size to field size recorded as 0.5, 0.75, 0.8 and 0.9 X4 = METHOD - rotational and non rotational method of planting Ŷ = INCOME the income per year recorded in x R 1 000 000.00 The partial dataset is as follows INCOME Y 1.3 2.4 3.2 1.5 2.1 a. C. Standardized Residual Sample Quantiles 15 20 1.0- 0.8- 0.6- 04- 02- 0.0- SIZE X₁ 25 5 8 2 1.2 1.5 Predicted Theoretical Quantiles 45 AGE X₂ 2 20 100 1.1. The analyst did some exploratory analysis and below are some of the residual plots he constructed. Study the plots and answer the questions that follows. 80 50 11 b. 3 RATIO X3 Standardized Residual 0.5 0.75 0.8 0.8 0.75 100 120 140 160 180 METHOD X4 Predicted Rotational Rotational Non-rotational Rotational Non-rotational Diagnose each of the possible problems that are displayed in the plots. If applicable also mention a formal way to test that it is indeed a problem. Also, when a problem is diagnosed, provide a possible remedial measure to remedy the problem. 1.2. In order to prepare the dataset for modelling, it became clear that RATIO repeats with similar values. The analyst decided to regard them also as categorical variables. Amend the dataset fully in order to build a regression model. Use an ascending order in the coding structure.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
Trigonometry (MindTap Course List)
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781305652224
Author:
Charles P. McKeague, Mark D. Turner
Publisher:
Cengage Learning