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Module 4.0 Improve Phase - 4.1 Simple Linear Regressions

This document provides an overview of the Improve Phase of a project and discusses simple linear regression and multiple linear regression. It covers correlation analysis, regression equations, residual analysis, and examples of simple linear regression including calculating a regression equation and evaluating the model using R-squared, ANOVA, and residual analysis.

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0% found this document useful (0 votes)
23 views11 pages

Module 4.0 Improve Phase - 4.1 Simple Linear Regressions

This document provides an overview of the Improve Phase of a project and discusses simple linear regression and multiple linear regression. It covers correlation analysis, regression equations, residual analysis, and examples of simple linear regression including calculating a regression equation and evaluating the model using R-squared, ANOVA, and residual analysis.

Uploaded by

Stackwell India
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MODULE 4.

IMPROVE PHASE
Improve Phase – Overview and Objectives

By the end of this phase, you will be able to:

• Explain Simple Linear Regression

• Discuss Multiple Linear Regression


Simple Linear Regression – Session Overview and Objectives

By the end of this session, you will able to:

• Define Correlation Analysis

• Explain Regression Equation

• Describe Residual Analysis


Analyse Phase - Correlation coefficient

• Correlation coefficient is used to quantify relationship between two continuous variables and denoted by
the symbol r.

• Correlation coefficient is used in the Analyze Phase of Six Sigma Projects to quantify causal relationship
between a continuous X and a Continuous Y variable.

• The r value varies between -1 and +1, -1 < r <+1

• r value of -1 indicates very strong negative correlation and a r value of +1 shows a very strong positive
correlation.

• r value of 0 indicates no correlation at all.


Analyse Phase - Regression

• When r = 1 or r = -1, all points fall on a straight line; when r = 0, they are scattered and give no
evidence of a linear relationship. Any other value of r suggests the degree to which the points
tend to be linearly related.
Simple Linear Regression

Only a single predictor variable or independent variable ‘X’ (e.g.: cutting speed) and a response variable
or dependent variable ‘Y’ (e.g: tool life).

The simple linear regression model is

Yi = β0 + β1 xi + εi i=1,2,...,n

where β0 is the intercept and β1 is the slope of the line and εij is the random error.
Simple Linear Regression – Example

A study was performed on wear of a bearing Y and its relationship to X1 = oil viscosity . The following data
were obtained. Fit a simple regression model to the data (Y vs. X1)  = 0.05

Regression Analysis: Y versus X1


Y X1
The regression equation is 193 1.6
Y = 228 - 2.86 X1
230 15.5
Predictor Coef SE Coef T P 172 22.0
Constant 227.83 26.01 8.76 0.001 91 43.0
X11 -2.8560 0.8780 -3.25 0.031
113 33.0
S = 31.1112 R-Sq = 72.6% R-Sq(adj) = 65.7%
About 66% Wear can be 125 40.0
predicted by oil viscosity
Analysis of Variance

Source DF SS MS F P
Regression 1 10240 10240 10.58 0.031
There is a regression
Residual Error 4 3872 968 between Wear and oil
Total 5 14112 viscosity
Simple Linear Regression – Example
Coefficient of Determination (R2)

Analysis of the validity of Regression Equation

The regression equation is y = 400 - 0.231 X2

P value of X2 factor is 0.015 - Means X2 is a significant X

P value of regression equation as per ANOVA table is 0.015 - Means the equation is valid

R sq adj value is 75.9 - Means only 76% of variation in Y is because of X2. Some other factors also
contribute to the variation.

Need to look for more potential X.2 adj should be min 85%
Coefficient of Determination (R2)

Residual Analysis:

Normal Probability Plot - Looks normal - ok

Residual vs Fits - Randomly above and below the line with no trends - ok

Histogram - shows a normal distribution - ok

Residual vs Time order - Randomly above and below the line with no trends - ok

Overall conclusion: The regression equation is valid, but X2 accounts for only 76% of variation in Y
Summary – Simple Linear Regression

In this session, you learnt about :

• Correlation Analysis

• Regression Equation

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