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Regression Student

Here are the key steps to solve this problem: 1. Calculate the means: X̅ = Experience = 11.5 Y̅ = Starting Salary = 16 2. Calculate Σ(X-X̅), Σ(Y-Y̅), Σ(X-X̅)(Y-Y̅): Σ(X-X̅) = -3.5 Σ(Y-Y̅) = 15 Σ(X-X̅)(Y-Y̅) = 57.5 3. Calculate the slope b and y-intercept a: b = Σ(X-X̅)(Y

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Rika Orimoto
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45 views20 pages

Regression Student

Here are the key steps to solve this problem: 1. Calculate the means: X̅ = Experience = 11.5 Y̅ = Starting Salary = 16 2. Calculate Σ(X-X̅), Σ(Y-Y̅), Σ(X-X̅)(Y-Y̅): Σ(X-X̅) = -3.5 Σ(Y-Y̅) = 15 Σ(X-X̅)(Y-Y̅) = 57.5 3. Calculate the slope b and y-intercept a: b = Σ(X-X̅)(Y

Uploaded by

Rika Orimoto
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 PPTX, PDF, TXT or read online on Scribd
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REGRESSION

STAT 190
 REGRESSION - is a descriptive statistical
technique for finding the best fitting straight line
between two variables.
 Regression line - is the resulting line.

 - is a line drawn through the points on a


scatter plot to summarize the relationship
between the variables being studied.
 Regression method

 A linear regression is used to make predictions


about a single value.
 In statistical modeling, regression analysis is a
set of statistical processes for estimating the
relationships between a dependent
variable (often called the 'outcome variable') and
one or more independents variables (often called
'predictors', 'covariates', or 'features'). The most
common form of regression analysis is linear
regression, in which one finds the line (or a more
complex linear combination) that most closely
fits the data according to a specific mathematical
criterion.
 Simple linear regression aims to find a linear
relationship between s response variable and a
possible predictor variables by the least squares
method.

 A regression equation is mathematical equation


that is used to predict the values of one
dependent variable from known values of one or
more independent variables.
THE LEAST SQUARE REGRESSION
EQUATION
  
 = a + bx
 where
 = is the dependent variable to be
predicted
x = is the independent ( predictor)
variable
a = y-intercept
b = slope of the line that represents
the equation
  

 = a + bx
 = 1,636.415 + 1.487

 
Constant a & b in the regression equation are
called regression coefficient.

 a = - b

 b =
The annual consumer expenditures
and annual incomes of a sample of 10
families in a Metropolitan Area in
2007 are shown on the following
table below. Prepare a regression and
a correlational analysis of their
expenditures and net incomes for
2007.
Family X Y XY
Income Expenditures
(hundred ( thousands
thousandpesos pesos)
)
A
A 10
10 23
23 230
230 100
100 529
529
B
B 2
2 7
7 14
14 44 49
49
C 4 15 60 16 225
C 4 15 60 16 225
D 6 17 102 36 289
D 6 17 102 36 289
E 8 23 184 64 529
E 8 23 184 64 529
F 7 22 154 49 484
F 7 22 154 49 484
G 4 10 40 16 100
G
H 4
6 10
14 40
84 16
36 100
196
HI 6
7 14
20 84
140 36
49 196
400
JI 7
6 20
19 140
114 49
36 400
361
N J=10 =6
60 =19
170 114 36
406 =361
3,162

N =10
   = = = 6

 = = = 17

 b =

 b = = = 2.22

 a = - b = 17 - 2.22 (6 ) = 3.68

 The least square regression line is,


 = a + bx

 = 3.68 + 2.22 x
 
 Therefore, if a family drawn from the same
population had an annual net income of P250,000
in 2017, its estimated annual consumer’s
expenditure shall be.

 = a + bx
 = 3.68 + 2.22(250,000)
 = Php 555003.68

 In the case where a = 3.68 means that estimated


annual consumer expenditure for a family where
income is zero pesos in 2007 is 3.68 (thousand
pesos) or P3680.
 The b value is refereed to as regression
coefficient or slope coefficient .
 Positive value of b denotes the regression line is
increasing.
 As income increases, the estimated consumer
expenditure increases also.

 LINEAR REGRESSION ANALYSIS


 A regression analysis is used to develop a
statistical model that can be used to predict the
values of one variable based on the values of one
another.
 
 COEFFICIENT OF DETERMINATION
 The coefficient of determination, denoted by
is the proportion of variation in y that can be
attributed to an approximate linear relationship
between x and y in the sample

 =
=

=
   =
 =
 = =

 = 0.91
= ( 0.91 = 0.8281 refer correlation ranges.
( high correlation/marked relationship)
= 82.81%
 We can say that there exists a 82.81 % variation
between the relationship of the consumer’s expenditures
and the annual net income of the 10 families.
GRADED ACTIVITY
 Experience 13 6 8 10 20 7 9 15
 Starting 20 14 16 19 21 12 13 21
salary ( thousands)

 A random sample of 8 office staffs within the last year


was selected from a large corporation. For each selected
office staff, his or her experience ( in Months) at the
time of hire and starting salary were recorded. The data
given in the table shown above.
 a. Determine the regression equation.

 b. Determination of coefficient

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