Q2. A researcher specified regression model , in order to
estimate effect of fertilizers and insecticides on corn production. Data for 10 years is
summarized below:
Where Y= bushels of corn per acre, X1 = amount of fertilizer in pounds per acre and
X2 = amount of insecticides in pounds per acre
i. Fit OLS regression equation and interpret it
ii. Using fitted regression equation, predict bushels of corn per acre produced if
amount of fertilizers used per acre is 30 pounds and amount of insecticides used
per acre is 8 pounds
iii. Calculate R2
and interpret it.
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