Stat Regression Report

WINTER
REGRESSION
ANALYSIS
Template
SUBJECT: BASIC AND INFERENTIAL STATISTICS

REPORTER: SHIELA ROBETH B. VINARAO
TOPIC:
REGRESSION ANALYSIS
PROFESSOR:
DR. GLORIA T. MIANO
THE SIMPLE LINEAR

REGESSION ANALYSIS
D
E
F
I
N
I
The simple linear regression

analysis is used when there is a
significant
relationship
between and variables.
T
I
O
N
This is used in predicting the

value of a dependent variable
given
the
value
of
the
independent variable .
THE SIMPLE LINEAR

REGESSION ANALYSIS
E
X
A
M
P
L
E
Suppose the advertising cost

and sales are correlated, then
we can predict the future sales
in terms of advertising cost .
Another type of problem which
uses regression analysis is when
variables corresponding to years
are given, it is possible to
predict the value of that variable
several years hence or several
THE SIMPLE LINEAR

REGESSION ANALYSIS
F
O
R
M
U
L
A
Example
WINTER
Consider the following data:
7
6
Template
5
y-axis
0
0
x-axis
Straight line indicates that the two variables are to some
extent LINEARLY RELATED
The variable we are basing our predictions on is called the

predictor variable and is referred to as . When there is only
one predictor variable, the prediction method is called
SIMPLE LINEAR REGESSION

1
1
2
2
6
6
4
4
6
6
8
8
1
1
4
4
3
3
3
3
9
9
9
9
4
4
5
5
20
20
16
16
5
5
4
4
20
20
25
25
6
6
2
2
12
12
36
36
75
3.5
=4
4
3.5
75
=4
Example
A study is
conducted on the
relationship of the
number of absences
and the grades of
the students in
English.
Determine the
relationship using
the following data.
Number of Absences
Grades in English
1
1
2
2
2
2
3
3
90
90
85
85
80
80
75
75
05
3
3
8
8
80
80
65
65
6
6
1
1
70
70
95
95
4
4
5
5
80
80
80
80
5
5
1
75
75
92
89
80
65
Scatter Diagram
Number of
Grades in
Absences
English
1
1
2
2
2
2
3
3
3
3
8
8
6
6
1
1
4
4
90
90
85
85
80
80
75
75
80
80
65
65
70
70
95
95
80
80
5
5
5
5
80
80
75
75
1
1
2
92
92
89
80
65
100
90
80
70
60
GradesinEnglish
y
50
40
30
20
10
0
0
Numberofabsences
x
9 10
Solving by the Stepwise Method
WINTER
Problem : Is there a significant relationship between

the number of absences and the grades of
15 students in English class?
Hypotheses :
Template
Ho:
There is no significant relationship between the

number of absences and the grades of 15 students
in English class.
H1:
There is a significant relationship between the

number of absences and the grades of 15 students
in English class.
Level of significance :
df = n 2
= 15 2
= 13
Pearson Product Moment

Coefficient of Correlation
S
T
A
T
I
S
T
I
C
S
281
7335
3950
Decision Rule :
If the r computed value is greater than or beyond

the critical value, reject Ho.
Conclusion :
The computed r value of is beyond the critical value

of at level of significance with degrees of freedom, so the
null hypothesis is rejected.
This means that there is a significant relationship

between the number of absences and the grades of
students in English. Since the value of r is negative, it
implies that students who had more absences had lower
grades.
Suppose we want to predict the grade of the student
who has incurred 7 absences . To get the value of x, the

simple linear regression analysis will be used.
69 is the grade of
the student with
7 absences.
Remarks:
WINTER
It is important to remember that the

values of a and Template
b are only estimates of the
corresponding parameters of a and b.
To justify the assumption of linearity, a

test for linearity of regression should be
performed.
If there are two or more independent
variables, the regression equation becomes
+
Significance Test in Simple

Linear Regression
The significance of the slope of the regression line is to determine if
the regression model is usable.
If the slope is not equal to zero, then we can use the regression
model to predict the dependent variable for any value of the
independent variable.
If the slope is equal to zero, we do not use the model to make
predictions.
The scatter plot amounts to determining whether or not the slope
of the line of the best fit is significantly different from a horizontal
line or not.
A horizontal line means there is no association between two
variables, that is
In testing for significance in simple linear regression, the null
hypothesis is H0: and the alternative hypothesis is H1:
Slope of
Linear Regression
1.2
If
0.8
y-axis 0.6
0.4
0.2
0
0.5
1.5
2.5
3.5
4.5
5.5
x-axis
A horizontal line means there is no

association between two variables.

Linear Regression
F
O
R
M
U
L
A
1
The t-test is conducted for testing the significance of r to

determine if the relationship is not a zero correlation.
Where:

Linear Regression
F
O
R
M
U
L
A
2
The t-test is conducted for testing the significance of r to

determine if the relationship is not a zero correlation.
Where:
is the estimated standard deviation of

is the standard deviation of the values about
the regression line.
Example
Given are two sets of data on the number of customers
(in hundreds) and sales (in thousand of pesos) for a given
period of time from ten eateries. Find the equation of the
regression line which can predict the amount of sales
from the number of customers. Can we conclude that we
can use the model to make such a prediction?
Eatery
10
12
16
20
20
22
26
58
105
117
137 157
169
149
202
88 118

Linear Regression
2
58
116
3364
105
630
36
11025
88
704
64
7744
118
944
64
13924
12
117
1404
144
13689
16
137
2192
256
18769
20
157
3140
400
24649
20
169
3380
400
28561
22
149
3278
484
22201
26
202
5252
676
40804
Given:

Linear Regression
58
116
3364
70
144
144
105
630
36
11025
90
64
225
88
704
64
7744
100
36
144
118
944
64
13924
100
36
324
12
117
1404
144
13689
120
16
137
2192
256
18769
140
20
157
3140
400
24649
160
36
20
169
3380
400
28561
160
36
81
22
149
3278
484
22201
170
64
441
26
202
5252
676
40804
190
144
144
Decision:
Since 8.62 is greater than 3.355, we
reject the H0 or accept the H1. Thus,
the obtained relationship is
significant or is non zero using .005
level.
We can conclude that we can use
the model to predict sales from
population.
COMPUTATION USING
MICROSOFT EXCEL
Pearson r
Syntax
+pearson(array1,array2)
or
+correl(array1,array2)
Slope b
Intercept a
+slope(known_ys,known_xs)
+intercept(known_ys,known_xs)
PEARSON r
SLOPE b
INTERCEPT a
THANK YOU

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WINTER

SUBJECT: BASIC AND INFERENTIAL STATISTICS

THE SIMPLE LINEAR

The simple linear regression

This is used in predicting the

THE SIMPLE LINEAR

Suppose the advertising cost

THE SIMPLE LINEAR

Consider the following data:

Straight line indicates that the two variables are to some

extent LINEARLY RELATED

The variable we are basing our predictions on is called the

SIMPLE LINEAR REGESSION

Solving by the Stepwise Method

Problem : Is there a significant relationship between

There is no significant relationship between the

There is a significant relationship between the

Pearson Product Moment

If the r computed value is greater than or beyond

The computed r value of is beyond the critical value

This means that there is a significant relationship

Suppose we want to predict the grade of the student

who has incurred 7 absences . To get the value of x, the

It is important to remember that the

To justify the assumption of linearity, a

Significance Test in Simple

A horizontal line means there is no

Significance Test in Simple

The t-test is conducted for testing the significance of r to

Significance Test in Simple

The t-test is conducted for testing the significance of r to

is the estimated standard deviation of

Significance Test in Simple

Significance Test in Simple

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