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Description
Work on "Airline Cost Data"
First draw scatter chart / line / trend line
Use Excel --> Data Analysis --> Regression
Explain all the terms
Work on Y = X**2
Problem with Residual
Prediction very bad for outside range value
Work on "Oil and Gas Well Data"
- separately for Oil Vs Year; Gas Well Vs Year
- What do you find?
- What will you do? (Take Year**2)
Work on "Yield" data, etc.
For Multiple Regression
- work on "Real estate" data
For Multiple Regression
- work on "Real estate" data
For Multicollinearity
- Try "Boston Housing"
- Use XLMiner
- Choose Backward Elimination with best set of size 13
- Also use Excel Regression, eliminate the first variable, and then second one. Note down Standard Error, R**2
and Adjustee R**2 at each stage
Airline Cost Problem
Number of Cost
Passengers ($1000)
61 4.280
63 4.080
67 4.420
69 4.170
70 4.480
74 4.300
76 4.820
81 4.700
86 5.110
91 5.130
95 5.640
97 5.560
5.8
5.6
5.4
5.2
5.0
4.8
4.6
4.4
4.2
5.6
5.4
5.2
5.0
4.8
4.6
4.4
4.2
4.0
55 60 65 70 75 80 85 90 95 100
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.948
R Square 0.899
Adjusted R Square 0.889 y intersept
Standard Error 0.177
Observations 12 slope
ANOVA
df SS MS F Significance F
Regression 1.0000 2.7980 2.7980 89.0922 0.0000
Residual 10.0000 0.3141 0.0314
Total 11.0000 3.1121
0.3
0.2
0.1
0
55 60 65 70 75 80 85 90 95 100
-0.1
-0.2
-0.3
-0.4
blem
Total
Market Number Age
Price ($1000) of Square of House
Y Feet x1 (Years) X2
63.0 1605 35
65.1 2489 45
69.9 1553 20
76.8 2404 32
73.9 1884 25
77.7 1558 14
74.9 1748 8
78.0 3105 10
79.0 1682 28
83.4 2470 30
79.5 1820 2
83.9 2143 6
79.7 2121 14
84.5 2485 9
96.0 2300 19
109.5 2714 4
102.5 2463 5
121.0 3076 7
104.9 3048 3
128.0 3267 6
129.0 3069 10
117.9 4765 11
140.0 4540 8
Predicted
Observation Residuals
Value
1 62.453 0.5475
2 71.468 -6.3682
3 71.519 -1.6195
4 78.618 -1.8182
5 74.059 -0.1591
6 75.604 2.0963
7 82.968 -8.0684
8 105.699 -27.6988
9 68.479 10.5206
10 81.12 2.2797
11 88.241 -8.7407
12 91.304 -7.4044
13 85.587 -5.8868
14 95.371 -10.871
15 85.431 10.5688
16 102.761 6.7388
17 97.645 4.8554
18 107.182 13.8176
19 109.35 -4.4497
20 111.235 16.7648
21 105.06 23.9395
22 134.468 -16.568
23 132.476 7.5239
30
20
10
0
50 60 70 80 90 100 110 120 130 140
-10
-20
-30
-40
10
9
8
7
6
5
4
3
2
1
10
9
8
7
6
5
4
3
2
1
0
-30 -20 -10 0 10 20
Bin Frequency
-30 1
-20 2
-10 9
0 6
10 4
20 1
Full-Time Employees In a
Hospital Estimated By
Counting The No. of Beds
Regression Analysis
Number of Beds FTES
23 69
29 95
29 102
35 118
42 126
46 125
50 138
54 178
64 156
66 184
76 176
78 225
Graph of Residuals
40
20
0
20 30 40 50 60 70 80 90
-20
-40
U.S. oil and Gas Well Drilling 1973-1998
Predicted Values and Error Terms for The Oil and Gas Well Data
Year Y Hat Et Et^2
1973 6.7623 3.4047 11.592
1974 7.2975 6.3495 40.317
1975 9.8793 7.0687 49.966
1976 13.2261 4.4619 19.908
1977 20.3087 -1.5637 2.445
1978 26.2896 -7.1086 50.532
1979 28.4851 -7.6341 58.279
1980 33.9125 -1.2735 1.622
1981 41.3084 2.2896 5.242
1982 38.2096 0.9894 0.979
1983 26.6838 10.4362 108.915
1984 33.3747 9.2303 85.198
1985 25.6500 9.4680 89.643
1986 10.8949 8.2021 67.275
1987 9.6914 6.4726 41.895
1988 10.9967 2.6393 6.966
1989 13.5655 -3.3615 11.300
1990 17.4945 -5.2965 28.053
1991 13.5316 -1.7616 3.103
1992 10.0934 -1.3364 1.786
1993 14.8134 -6.4064 41.042
1994 13.5629 -6.8419 46.812
1995 10.9419 -3.3149 10.988
1996 12.9468 -4.6328 21.463
1997 18.2333 -7.7973 60.797
1998 20.2669 -13.1489 172.894
Year Yield
1 14.03
2 10.69
3 8.63
4 9.58
5 7.48
6 5.98
7 5.82
8 6.69
9 8.12
10 7.51
11 5.42
12 3.45
13 3.02
14 4.29
15 5.51
16 5.02
17 5.07