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REGRESSION

ANALYSIS

Template

REPORTER: SHIELA ROBETH B. VINARAO

TOPIC:

REGRESSION ANALYSIS

PROFESSOR:

DR. GLORIA T. MIANO

REGESSION ANALYSIS

D

E

F

I

N

I

analysis is used when there is a

significant

relationship

between and variables.

T

I

O

N

value of a dependent variable

given

the

value

of

the

independent variable .

REGESSION ANALYSIS

E

X

A

M

P

L

E

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

REGESSION ANALYSIS

F

O

R

M

U

L

A

Example

WINTER

7

6

Template

5

y-axis

0

0

x-axis

predictor variable and is referred to as . When there is only

one predictor variable, the prediction method is called

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

WINTER

the number of absences and the grades of

15 students in English class?

Hypotheses :

Template

Ho:

number of absences and the grades of 15 students

in English class.

H1:

number of absences and the grades of 15 students

in English class.

Level of significance :

df = n 2

= 15 2

= 13

Coefficient of Correlation

S

T

A

T

I

S

T

I

C

S

281

7335

3950

Decision Rule :

the critical value, reject Ho.

Conclusion :

of at level of significance with degrees of freedom, so the

null hypothesis is rejected.

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.

simple linear regression analysis will be used.

69 is the grade of

the student with

7 absences.

Remarks:

WINTER

values of a and Template

b are only estimates of the

corresponding parameters of a and b.

test for linearity of regression should be

performed.

If there are two or more independent

variables, the regression equation becomes

+

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

association between two variables.

Linear Regression

F

O

R

M

U

L

A

1

determine if the relationship is not a zero correlation.

Where:

Linear Regression

F

O

R

M

U

L

A

2

determine if the relationship is not a zero correlation.

Where:

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

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