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Correlation Regression

The document contains a table with data on the costs of pizza slices and subway fares for 6 observations. It performs a linear regression analysis to determine the correlation between the two variables and estimates the linear regression equation. It finds a very high positive correlation (r=0.988) between the costs, indicating they are strongly linearly related. The regression equation calculated has an intercept of 0.035 and slope of 0.945, meaning as the cost of a pizza slice increases by $1, the estimated cost of subway fare increases by $0.945.

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aris budi santoso
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16 views14 pages

Correlation Regression

The document contains a table with data on the costs of pizza slices and subway fares for 6 observations. It performs a linear regression analysis to determine the correlation between the two variables and estimates the linear regression equation. It finds a very high positive correlation (r=0.988) between the costs, indicating they are strongly linearly related. The regression equation calculated has an intercept of 0.035 and slope of 0.945, meaning as the cost of a pizza slice increases by $1, the estimated cost of subway fare increases by $0.945.

Uploaded by

aris budi santoso
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 XLSX, PDF, TXT or read online on Scribd
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Table 10-2 Costs of a Slice of Pizza and Subway Fare (in dollars)

obs Cost_of_Pizza (x) Subway_Fare (y) x² y² xy


1 0.15 0.15 0.02 0.02 0.0225 x̅
2 0.35 0.35 0.12 0.12 0.1225 y̅
3 1.00 1.00 1.00 1.00 1 Sx
4 1.25 1.35 1.56 1.82 1.6875 Sy
5 1.75 1.50 3.06 2.25 2.625
6 2.00 2.00 4.00 4.00 4
∑ 6.50 6.35 9.77 9.22 9.46

Correlation

n 6

r 0.988

Hypothesis of Correlation

t 12.6920316532464
p-value 0.000027
obs zx zy zx.zy
1.083 1 -1.26 -1.29 1.62
1.058 2 -0.99 -1.00 1.00
0.739 3 -0.11 -0.08 0.01
0.707 4 0.23 0.41 0.09
5 0.90 0.62 0.56
6 1.24 1.33 1.65
∑ 4.94

r ∑(zx.zy)
n-1

r 0.988
Table 10-2 Costs of a Slice of Pizza and Subway Fare (in dollars)

obs Cost_of_Pizza
Subway_Fare
(x) (y) x² y² xy
1 0.15 0.15 0.02 0.02 0.0225 x̅ 1.083
2 0.35 0.35 0.12 0.12 0.1225 y̅ 1.058
3 1.00 1.00 1.00 1.00 1 Sx 0.739
4 1.25 1.35 1.56 1.82 1.6875 Sy 0.707
5 1.75 1.50 3.06 2.25 2.625
6 2.00 2.00 4.00 4.00 4
∑ 6.50 6.35 9.77 9.22 9.46

n 6

r 0.988

y = b0 + b1.x
b1 = r x (Sy/Sx) b1 0.945 ŷ = 0,035 + 0,945x
b0 = y̅ - b1.x̅ b0 0.035

x y ŷ e
0.15 0.15 0.176 0.026
0.35 0.35 0.365 0.015
1.00 1.00 0.980 - 0.020
1.25 1.35 1.216 - 0.134
1.75 1.50 1.688 0.188
2.00 2.00 1.925 - 0.075
Regression
2.50

2.00

1.50

1.00

0.50

0.00
0.00 0.50 1.00 1.50 2.00 2.50

y ŷ Linear (ŷ)

Residual
e
0.250
0.200
0.150
0.100
0.050
-
0.00 0.50 1.00 1.50 2.00 2.50
-0.050
-0.100
-0.150
-0.200
b1
b0
0.945 ŷ = 0,035 + 0,945x
0.035

x y ŷ (y - ŷ)² xy y² x²
0.15 0.15 0.176 0.001 0.0225 0.02 0.02 x̅
0.35 0.35 0.365 0.000 0.1225 0.12 0.12 y̅
1.00 1.00 0.980 0.000 1 1.00 1.00 Sx
1.25 1.35 1.216 0.018 1.6875 1.82 1.56 Sy
1.75 1.50 1.688 0.035 2.625 2.25 3.06
2.00 2.00 1.925 0.006 4 4.00 4.00
Σ 6.50 6.35 6.35 0.061 9.458 9.218 9.770
n 6
se 0.122987

x0 2.25 ŷ 2.161
α 0.05
tα/2 2.776

E 0.441

upper 2.601
lower 1.720
1.083
1.058
0.739
0.707
Table 10-2 Costs of a Slice of Pizza and Subway Fare (in dollars)

obs Cost_of_Pizza (x) Subway_Fare (y) x² y² xy x-x̅ y-y̅


1 0.15 0.15 0.02 0.02 0.0225 -0.933 -0.908
2 0.35 0.35 0.12 0.12 0.1225 -0.733 -0.389
3 1.00 1.00 1.00 1.00 1 -0.083 0.293
4 1.25 1.35 1.56 1.82 1.6875 0.167 1.350
5 1.75 1.50 3.06 2.25 2.625 0.667 1.500
s 2.00 2.00 4.00 4.00 4 0.917 2.000
∑ 6.50 6.35 9.77 9.22 9.46 0.00 3.85

n 6

r 0.988
(x-x̅)^2
0.871 x̅ 1.083
0.538 y̅ 1.058
0.007 Sx 0.739
0.028 Sy 0.707
0.444
0.840
2.73
1 14
3 24
2 18
1 17
3 27
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9365858116
R Square 0.8771929825
Adjusted R0.8362573099
Standard E0.4046513191
Observatio 5

ANOVA
df SS MS F Significance F
Regression 1 3.508772 3.508772 21.42857 0.018986
Residual 3 0.491228 0.163743
Total 4 4

CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95,0%


Upper 95,0%
Intercept -1.50877193 0.779284 -1.936099 0.148277 -3.988803 0.971259 -3.988803 0.971259
X Variable 0.1754385965 0.037899 4.6291 0.018986 0.054827 0.29605 0.054827 0.29605
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.987811
R Square 0.97577
Adjusted R Square 0.969713
Standard Error 0.128556
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 2.662227 2.662227 161.0877 0.000222
Residual 4 0.066106 0.016527
Total 5 2.728333

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95,0%
Upper 95,0%
Intercept -0.009436 0.100834 -0.09358 0.929943 -0.289395 0.270523 -0.289395 0.270523
X Variable 1 1.032538 0.081353 12.69203 0.000222 0.806665 1.258411 0.806665 1.258411
Upper 95,0%
0.15 0.15
0.35 0.35
1.00 1.00
1.25 1.35
1.75 1.50
2.00 2.00

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