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Module IV Regression

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Tia Gupta
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5 views

Module IV Regression

Uploaded by

Tia Gupta
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Regression

The statistical tool with the help of which can


estimate the unknown values of one variable
from known values of another variable is called
Regression.
Expected amount of sales for given Advertising

Expenditure.
 In economics we can estimate Price for a given

demand.
 Regression models are classified as
Simple & multiple
Linear and Non linear
 There are two regression lines,
Regression line of Y on X & Regression
line of X on Y.
 The variable whose value is estimated
is called dependent or response
variable.
 The variable whose value is used to
estimate the value of response variable
is called independent or predictor
variable.
 Y = a + bX is the regression equation
of Y on X, b is regression coefficient of
Y on X. It is also denoted by byx.
 X = a + bY is the regression equation
of X on Y, b is regression coefficient of
X on Y. It is also denoted by bXY.
 Regression  Regression
Equation of Y on equation of X on Y
X
X  a  bY
Y  a  bX
normal equations are
normal equations are
 Y  na  b X
 XY  a X  b X 2  X  na  b Y
 XY  a Y  b Y 2
 Regression Equation Of Y on X
Y  Y  b yx ( X  X )

b yx  Re gression coefficient of Y on X
y
b yx  r
x

b yx 
 ( X  X )(Y  Y )
(X  X ) 2

N  XY   X  Y
b yx 
N  X   X 
2 2

N dxd y   dx  d y
b yx 
N  d x   d x 
2 2
 Regression Equation Of X on Y

X  X  bxy (Y  Y )

bxy  Re gression coefficient of X on Y


x
bxy  r
y

bxy 
 ( X  X )(Y  Y )
 (Y  Y ) 2

N  XY   X  Y
bxy 
N  Y   Y 
2 2

N dxd y   dx  d y
bxy 
N  d y   d y 
2 2
 Regression coefficient of Y on X
◦ The quantity b in the regression equation of Y on X
and it measures the amount of change in Y for a
unit change in X.
 Regression coefficient of X on Y
◦ The quantity b in the regression equation of X on Y
and it measures the amount of Change in X for a
unit change in Y.
 The correlation coefficient is the geometric
mean of two regression coefficients of X
and Y
r  b yx  bxy
i.e
 Both the regression coefficients will have
the same sign.
 If one of the regression coefficients is
greater than 1,the other must be less than
unity.
 Correlation coefficient will have the same
sign as that of regression coefficients.
 The average value of regression coefficients
would be greater than correlation coefficient
b yx  bxy 
r
2
 Regression coefficients are independent of
change of origin but not scale.
 Correlation literally means
 Regression is mathematical
the relationship between measure expressing the
two or more variables so average relationship
that movements in one tend between two variables
to be accompanied by
 Regression indicates cause
movements in the other and effect relationship
 Correlation need not imply
cause and effect
relationship between the
variables.

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