Dr.

Ahmad Syamil
Advance Statistical Method
CIT 6093 ARKANSAS STATE UNIVERSITY
Department of Computer & Information Technology

Chapter Five

Fall 2005

OBJECTIVES
APPLICATION OF MULTIPLE CORRELATION/REGRESSION ANALYSIS
MULTIPLE CORRELATION MULTIPLE REGRESSION

TECHNICAL DESCRIPTION COMMON PROBLEMS IN MULTIPLE CORRELATION/REGRESSION ANALYSIS

APPLICATION OF MULTIPLE CORRELATION/REGRESSION ANALYSIS

Multiple Correlation
Statistical Techniques for Measuring the Closeness of the Relationship Between Variables

It Measures the Degree to which Changes in One Variable are Associated with Changes in Another
It can Only Indicate the Degree of Association or Covariance Between Variables. Covariance is a Measure of the Extent to which Two Variables are Related
Contd

APPLICATION OF MULTIPLE CORRELATION/REGRESSION ANALYSIS

Multiple Regression Requires Two Operations
Derive an Equation, Called the Regression Equation, and a Line Representing the Equation to Describe the Shape of the Relationship Between the Variables. Estimate the Dependent Variable (Y) from the Independent Variable (X), Based on the Relationship Described by the Regression Equation.

COMMON PROBLEMS IN MULTIPLE CORRELATION/REGRESSION ANALYSIS

Technical Description Graphical Representations Statistical Significance of R

Interpretation of Multiple Correlation Coefficients

Interpretation of Multiple Regression Coefficients Requirement/Assumptions for Multiple Regression
Contd

COMMON PROBLEMS IN MULTIPLE CORRELATION/REGRESSION ANALYSIS

Missing Values: How to Deal the Issue? Eliminate a Respondent or Company Entirely Provide an Estimated Value

Contd

COMMON PROBLEMS IN MULTIPLE CORRELATION/REGRESSION ANALYSIS

Uniform Ratings A Related Question is what to do About Respondents Who Have no Missing Values But Give the Same Rating for Nearly All Product Attributes, Attitudes, or Important Ratings.

Contd

COMMON PROBLEMS IN MULTIPLE CORRELATION/REGRESSION ANALYSIS

Multi-Collinearity High correlation exists between two independent variables

This means the two variables contribute redundant information to the multiple regression model

Contd

COMMON PROBLEMS IN MULTIPLE CORRELATION/REGRESSION ANALYSIS

Dummy Variables
Categorical Explanatory Variable with Two or More Levels Yes or No, On or Off, Male or Female Code as 0 or 1 Regression Intercepts are Different if the Variable is Significant Assume Equal Slopes for Other Variable