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Module 9 - Simple Linear Regression & Correlation

This document provides an overview of simple linear regression and correlation analysis. It defines regression as expressing the relationship between variables in the form of an equation, while correlation quantifies the strength of the linear relationship between two variables. Simple linear regression analyzes the relationship between a single dependent and independent variable, fitting a linear equation to the data of the form y = a + bx. Correlation indicates how strongly two variables change together without implying causation. The document outlines the assumptions, components, and calculations involved in simple linear regression and correlation analysis. It provides an example of using these techniques to investigate the relationship between patient age and blood pressure.

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Roel Sebastian
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Download as PDF, TXT or read online on Scribd
133 views

Module 9 - Simple Linear Regression & Correlation

This document provides an overview of simple linear regression and correlation analysis. It defines regression as expressing the relationship between variables in the form of an equation, while correlation quantifies the strength of the linear relationship between two variables. Simple linear regression analyzes the relationship between a single dependent and independent variable, fitting a linear equation to the data of the form y = a + bx. Correlation indicates how strongly two variables change together without implying causation. The document outlines the assumptions, components, and calculations involved in simple linear regression and correlation analysis. It provides an example of using these techniques to investigate the relationship between patient age and blood pressure.

Uploaded by

Roel Sebastian
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE 9

SIMPLE LINEAR
REGRESSION &
CORRELATION
ENGINEERING DATA ANALYSIS
REGRESSION CORRELATION
expresses the quantifies the strength
relationship in the form of the linear relationship
of an equation between a pair of
variables
REGRESSION ANALYSIS
set of statistical methods used for
the estimation of relationships
between a dependent variable
and one or more independent
variables. It can be utilized to
assess the strength of the
relationship between variables
and for modeling the future
relationship between them.
OBJECTIVES
of Regression Analysis
1. determines how much dependent variable
changes with changes in each of the
independent's variables
2. forecasts or predicts the value of dependent
variable based on the values of the independent's
variables
Regression Analysis develops a linear relationship
between a response variable and explanatory
variables for the purposes of prediction
LINEAR explores relationships that can be
readily described by straight lines
REGRESSION or their generalization to many
dimensions

Simple Linear Multiple


Regression Regression

analyzes relationship analyzes relationship


between a single between a single
dependent variable and dependent variable and
a single independent several independent
variable. variable
Simple Linear Multiple
Regression Regression

has only one x variable has two x variables


characteristics that can
INDEPENDENT be measured directly;
variable these variables are also
called predictor or
explanatory variables

characteristic whose
DEPENDENT value depends on the
variable values of independent
variables
ASSUMPTION of Regression Analysis
The relationship between independent
variable and dependent is linear.
The expected value of the error term is zero.
The variance of the error term is constant for all the
values of the independent variable, the assumption of
homoscedasticity.
There is no autocorrelation.
The independent variable is uncorrelated with the error
term.
ASSUMPTION of Regression Analysis
The error term is normally distributed.
On an average difference between the observed value
(yi) and the predicted value (ˆyi) is zero.
On an average the estimated values of errors and values
of independent variables are not related to each other.
The squared differences between the observed value
and the predicted value are similar.
There is some variation in independent variable. If there
are more than one variable in the equation, then two
variables should not be perfectly correlated.
INTERCEPT or CONSTANT
Intercept is the point at which the regression intercepts y-axis.
Intercept provides a measure about the mean of dependent
variable when slope(s) are zero.
If slope(s) are not zero, then intercept is equal to the mean of
dependent variable minus slope × mean of independent
variable.

SLOPE
Change is dependent variable as we change independent
variable.
Zero Slope means that independent variable does not have
any influence on dependent variable.
For a linear model, slope is not equal to elasticity. That is
because; elasticity is percent change in dependent variable, as
a result one percent change in independent variable.
SIMPLE LINEAR REGRESSION
is a statistical method that allows us to summarize and
study relationships between two continuous
(quantitative) variables.
In a cause-and-effect relationship, the INDEPENDENT
variable is the CAUSE, and the DEPENDENT variable is
the EFFECT.
Least squares linear regression is a method for
predicting the value of a dependent variable y, based on
the value of an independent variable x.
One variable, denoted (x), is regarded as the
predictor, explanatory, or independent variable.
The other variable, denoted (y), is regarded as the
response, outcome, or dependent variable.
SIMPLE REGRESSION MODEL

x = independent variable
y = dependent variable
y = a + bx a = y intercept/regression constant
b = slope of the line

wherein:
Example:
A study is conducted involving 10 patients to investigate the
relationship and effects of patient's age and their blood pressure.
CORRELATION
statistical measure that indicates the
extent to which two or more variables
fluctuate together.

A positive correlation indicates the


extent to which those variables
increase or decrease in parallel; a
negative correlation indicates the
extent to which one variable increases
as the other decreases.
DO NOT BE CONFUSED

CORRELATION CAUSATION

Note that there may be an unknown factor that


influences both variables similarly. Additionally,
there are unrelated events that might have a
correlation as a coincidence.
CORRELATION
shows whether and how strongly pairs of variables are
related. An intelligent correlation analysis can lead to a
greater understanding of your data.

Correlation can be positive or direct, when the values


increase together; negative or inverse, when the one
value increases as the other increases; or no correlation
at all, when data points are randomly dispersed.
HOW TO COMPUTE?
Example:
A study is conducted involving 10 patients to investigate the
relationship and effects of patient's age and their blood pressure.
ANALYSIS OF VARIANCE (ANOVA)
ANOVA is an inferential test designed for use with 3 or
more data sets
A technique used to determine whether more than two
population means are equal
Based upon F value which reflects the ratio of two sample
variances. In the context of ANOVA, the sample variances
are called mean squares or MS Values.

An ANOVA test is a way to find out if survey or experiment


results are significant. In other words, they help you to figure
out if you need to reject the null hypothesis or accept the
alternate hypothesis
ASSUMPTION
The various groups are assumed to be in
normal populations.

The variances of the different groups are


assumed to be equal.

The random samples in the groups should be


independent.
ANOVA
EXAMPLE Three types of fertilizers are used
on three groups of plants for 5
weeks. We want to check if there
is a difference in the mean growth
of each group. Using the data
given below apply a one way
ANOVA test at 0.05 significant
level. figure at next slide
EXAMPLE
EXAMPLE
EXAMPLE
EXAMPLE
END

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