CONDUCTING

REGRESSION ANALYSIS
USING
SPSS
A HANDS-ON GUIDE WITH ECONOMIC DATA

www.tutorhelpdesk.com PRESENTATION
2024
 Introduction

Regression analysis is a technique of great

importance that aims at analyzing the
correlations of variables, which are used mostly in
economics, medicine, social sciences, etc. This ppt
will explain how to undertake a regression
analysis using SPSS with an economic dataset as
our example. More precisely, the unemployment
rate and GDP data will be used to analyze the
relationship between economic growth
(measured by GDP) and unemployment.
 What is Regression Analysis?
Predicting outcomes: It
01 enables to predict the value
In general, regression analysis provides a of the dependent variable on
relation between the dependent variable the basis of the independent
and one or more independent variables. The variables.
simplest form is the linear regression which
plots a straight line through the data points Understanding relationships:
so as to minimize the error between the Correlation goes further
predicted, and actual values. Multiple
02 since it measures the extent
regression for instance allows for the use of and direction of a
several predictors in the analysis. relationship between two or
more variables.
Hypothesis testing: It allows
Regression analysis helps in: 03 you to hypothesize about
whether several variables
have a significant effect on
other variables.
WHY SPSS FOR
REGRESSION ANALYSIS?
It also has an easy-to-use graphical user interface and an exhaustive suite
for doing regression on SPSS without requiring any intensive
programming. SPSS users can carry out computations ranging from
descriptive statistics to comprehensive statistical analysis and modeling
best suited for novices and experts.
 Simple Guide Using SPSS

HOW TO PERFORM
REGRESSION ANALYSIS?
For this demonstration, we will use a hypothetical economic dataset that contains two key
variables:

Unemployment Rate:
GDP (Gross Domestic Product):
The dependent variable that we propose to forecast
The independent variable, which is also known
is the one that any shift in GDP is expected to
as the economic output of a country.
impact.
STEP 1: PREPARE THE GDP
Unemployment

DATASET Country
Year (in
trillions)
Rate (%)

One important step you should take before

employing any tools of analysis is to check that
USA 2019 21.4 3.7
your data is clean, formatted correctly, and capable
of supporting regression analysis.
Canada 2019 1.84 5.7

Here is a sample of our dataset:

Loading Data into SPSS: Germany

2019 3.86 3.1

Select the file option on SPSS software and click

open data then locate your data set in the .sav, xls,
Japan 2019 5.08 2.4
or CSV format. Check that you have used the
appropriate variable name. For demonstration let
us label the “GDP” column as the independent UK 2019 2.83 3.8
variable and “Unemployment Rate” as the
dependent variable.
STEP 2: VISUALIZE THE
DATA
Before running the regression, it's important to explore
the data visually.
1. Scatter Plot:
⚬ Go to Graphs > Legacy Dialogs > Scatter/Dot.
⚬ Select "Simple Scatter" and click "Define".
⚬ Place "GDP" on the X-axis and "Unemployment
Rate" on the Y-axis.
⚬ Click "OK" to generate the scatter plot.
You can be able to make an early decision in terms of
positive, weak, strong, or no relationship at all by just
looking at this scatter plot. If you see a downward-
sloping trend, that might indicate a negative
relationship: You can notice a reverse relation which
means that employment decreases as the GDP
increases.
STEP 3: CONDUCT THE
REGRESSION ANALYSIS
Now, let's run the linear regression analysis.
1. Access the Regression Menu:
⚬ Go to Analyze > Regression > Linear.
2.Specify Variables:
⚬ Place "Unemployment Rate" in the "Dependent"
box and "GDP" in the "Independent(s)" box.
3.Options:
⚬ You can leave the default options as they are or
explore additional features such as confidence
intervals, Durbin-Watson tests for
autocorrelation, or saving residuals for further
analysis.
4.Run the Regression:
⚬ Click "OK" to run the regression analysis.
STEP 4: INTERPRET THE RESULTS
Once the analysis is complete, SPSS will generate several tables. Here's how to interpret
the key ones:
ANOVA TABLE
MODEL SUMMARY SIGNIFICANCE OF THE PREDICTOR

The ANOVA table checks if

The R Square value shows the regression model is a. The Sig. (p-value) in the
the extent up to which the significantly better in coefficients table tests
independent variable has outcome variable prediction
whether the individual
explained the dependent than a model which has no
predictor (GDP) is
variable. For instance, if the predictors. The significance
statistically significant.
obtained R Square is 0.65 value or p-value in the ANOVA
b. A p-value less than 0.05
this implies that 65 percent table shows the overall
significance of the model.
indicates that GDP is a
of the variance in
Model is significant when the significant predictor of
unemployment can be
p-value is less than 0.05. unemployment.
explained by changes in
ANOVA: Coefficients:
GDP.
F = 34.56 GDP Coefficient = -0.45
Model Summary:
Significance (p-value) = 0.002 p-value = 0.001
R Square = 0.65
Adjusted R Square = 0.64
STEP 4: INTERPRET THE RESULTS (CONTD.)

COEFFICIENTS TABLE

a. This table provides the regression coefficients, which are used to

construct the regression equation.
b. The Unstandardized Coefficients column contains the values for the
intercept (constant) and the slope (GDP).
c. The regression equation can be written as:
Unemployment Rate=β0​ + β1​ × GDP
Suppose the table provides the following values:
i. Constant (Intercept): 5.8
ii. GDP (Slope): -0.45
This gives us the equation:
Unemployment Rate=5.8−0.45×GDP
This equation suggests that for every additional trillion dollars in GDP, the
unemployment rate decreases by 0.45 percentage points.
STEP 5: EVALUATE To check these assumptions in SPSS:
MODEL ASSUMPTIONS
• Linearity: You can examine the
For linear regression, several assumptions scatterplot. Based on our expectation we
need to be met: should be able to observe a linear
correlation between the GDP and the
1. Linearity: The graph of the independent unemployment rate.
and dependent variables must be a straight • Independence and Homoscedasticity:
line. You can select ‘Standardized Residuals’
2. Independence of Errors: The residuals from the drop-down ‘SCALE’ (Analyze >
(errors) should be independent. Regression > Linear > Save) and then
3. Homoscedasticity: The residuals should determine if the residuals seem to have
be of equal variance in each of the level of any particular pattern.
the independent variable. • Normality: To make sure that the
4. Normality of Residuals: The residuals assumptions are met, a histogram or Q-Q
should be randomly distributed. plot of the residuals should be created by
going to Graphs> Legacy Dialogs >
Histogram.
STEP 6: REPORTING THE
RESULTS
Example of a report statement:
When reporting the results of your
regression analysis, you should include the To achieve this, a straightforward linear
following information: regression was run on the variables of
GDP to arrive at a forecast of the
1. The regression equation: Y=5.8−0.45×GDP unemployment rate. The findings reveal
2. The R-squared value: Indicating how that GDP has a significant correlation
much variance in the unemployment rate is with the unemployment rate (r = -0.45,
explained by GDP. p = 0.001) and accounts for 65% of the
3. The significance levels (p-values): variance, based on the model. The
Regarding the total proposed model and regression equation shows that,
each of the individual predictors unemployment is inversely related to
GDP, and for every one trillion dollars
rise in the GDP the unemployment rate
declines by 0.45 percentage points.
 1. Pre-process
big data. Using regression analysis on large and
WHY SPSS ASSIGNMENT complicated data might prove to be a
2. Understand
HELP IS NEEDED FOR challenge to learners working on
complex outputs assignments, thesis, or research. As we
COMPLEX REGRESSION like ANOVA, know, SPSS makes the job nearly
ANALYSIS? coefficients, and effortless but complex data structures,
residuals of a multicollinearity, outliers, and
assumptions such as homoscedasticity
variable.
or normality are not trivial to handle.
3. Ensure Our SPSS Assignment Help allows
compliance students to deal with these issues by
with regression getting professional assistance to
assumptions. analyze data correctly, create
comprehensive reports, and adhere to
4. Develop clear
academic requirements. Whether
and concise you’re working with big economic
academic datasets, social science variables, or
reports that multivariate models,
meet your
our experts help you:
institution's
requirements.
 Conducting regression analysis
using SPSS is a straightforward
process once you understand the
key steps: Prepare the dataset,

CONCLUSION visualize the relationship, perform

a test run of analysis, and state
observations from the analytical
KEY TAKEAWAYS output. Looking at our example,
we get to establish the fact that
We offer you individual coaching there is some negative
to prevent the misuse of time, relationship between the GDP
avoid pitfalls, and receive only the and the unemployment rate,
best results, making your output something that makes economic
distinctive.
sense. SPSS simplifies the above
Opt for our SPSS regression help discussed steps in such a way
services where we ensure that you that it can explain regression
fully understand how to execute a analysis to those who have no
successful process to achieve the statistical background.
best results in your coursework!
THANK YOU
TUTORHELPDESK.COM
+1-6178070926 | [email protected]

www.tutorhelpdesk.com