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A Multiple Regression Model for Net Income Estimates from 100-Sow Production Units¹

North Carolina State University, Raleigh 27607

Abstract

Two regression equations are presented for evaluating the effects of market conditions and production efficiency on annual net income from 100-sow production units. The linear model can be used to evaluate changes in net income associated with varying one of the 11 possible input variables. The larger model can be used for the evaluation of changes in any one or all of the 11 input variables simultaneously, and should be used when two or more cost or production factors are used as input variables away from their central point. An example is presented showing the insensitivity of a complete production system to changes in the hog: corn ratio and a similar example considers the effect on annual net income of variations in market weight of live hogs.

¹ Paper No. 3799 of the Journal Series of the North Carolina State University Agricultural Experiment Station, Raleigh.

² Present address: Honeggers & Co., Fairbury, Illinois.

³ Department of Animal Science.

⁴ Department of Statistics.