Stat Regression Report

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    SUBJECT: BASIC AND INFERENTIAL STATISTICS

    REPORTER:SHIELA ROBETH B. VINARAO

    TOPIC: REGRESSION ANALYSIS

    PROFESSOR: DR. GLORIA T. MIANO

    REGRESSION

     ANALYSIS

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    THE SIMPLE LINEAR

    REGESSION ANALYSIS

    The simple linear regression

    analysis is used when there is a

    signifcant relationshipbetween and variables.

    This is used in predicting thevalue o a dependent variable

    given the value o the

    independent variable .

    D

    E

    F

    I

    N

    I

    T

    I

    O

    N

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    THE SIMPLE LINEAR

    REGESSION ANALYSIS

    Suppose the advertising cost

    and sales are correlated, then

    we can predict the uture sales

    in terms o advertising cost .Another type o problem which

    uses regression analysis is when

    variables corresponding to yearsare given, it is possible to

    predict the value o that variable

    several years hence or several

    E

    X

    A

    M

    P

    LE

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    THE SIMPLE LINEAR

    REGESSION ANALYSIS

    F

    O

    R

    M

    U

    LA

     

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    ExampleConsider the following data:

    1 6

    2 4

    3 3

    4 5

    5 4

    6 2

    1 6

    2 4

    3 3

    4 5

    5 4

    6 2

    0 1 2 3 4 5 6 70

    1

    2

    3

    4

    5

    6

    7

    x-axis

    y-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

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    1 6 6 1

    2 4 8 4

    3 3 9 9

    4 5 20 16

    5 4 20 25

    6 2 12 36

     3.5

    4

     = 4

    75

    1 6 6 1

    2 4 8 4

    3 3 9 9

    4 5 20 16

    5 4 20 25

    6 2 12 36

    SIMPLE LINEAR REGESSION

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    3.5

    4

     = 4

    75

     

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    05Example A study isconducted 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 90

    2 852 80

    3 75

    3 80

    8 65

    6 70

    1 95

    4 80

    5 80

    5 75

    1 92

    2 89

    1 80

    9 65

    1 90

    2 85

    2 80

    3 75

    3 80

    8 65

    6 70

    1 95

    4 80

    5 80

    5 75

    1 92

    2 89

    1 80

    9 65

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    Number of

     Absences

    Grades in

    English

    1 90

    2 85

    2 80

    3 75

    3 80

    8 65

    6 70

    1 95

    4 80

    5 805 75

    1 92

    2 89

    1 80

    9 65

    1 90

    2 85

    2 80

    3 75

    3 80

    8 65

    6 70

    1 95

    4 80

    5 805 75

    1 92

    2 89

    1 80

    9 65

    0 1 2 3 4 5 6 7 8 9 100

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    Number of absences

    x

    ra!es in "n#lis$

    y

    Scatter Diagram

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    Solving by the Stepwise Method

    Problem :Is there a significant relationship betweenthe number of absences and the grades of15 students in English class?

    Hypotheses :

    Level of significance : 

    There is no significant relationship between the

    number of absences and the grades of 15 students

    in English class. Ho:

    There is a significant relationship between the

    number of absences and the grades of 15 students

    in Englishclass.

     H1:

    df = n – 2

    = 15 – 2

      = 13

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    ST

    A

    TI

    S

    T

    I

    C

    S

    Pearson Product Moment

    Coefficient of Correlation

    281 7335  3950

     

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    The computedr 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 ofr is negative, it

    implies that students who had more absences had lower

    grades.

     

    Decision Rule :

    If ther computed value is greater than or beyondthe critical value, reject Ho.

    Conclusion :

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    Suppose we want to predict the grade of the student

    who has incurred7 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.

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    Remarks: It is important to remember that thevalues of a and b are only estimates of the

    corresponding parameters of a and b.

    To justify the assumption of linearity, atest for linearity of regression should be

    performed.

    If there are two or more independent

    variables, the regression equation becomes

    +

     

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    The significance ofthe slope ofthe regression line is to determine if

    the regression model is usable.

    If theslope is not equal to zero, then we can usethe regression

    model to predict the dependent variable for any value of the

    independent variable.

    If theslope is equal to zero, we do not usethe model to makepredictions.

    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:

    Significance Test in Simple

    Linear Regression

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    0%5 1 1%5 2 2%5 3 3%5 4 4%5 5 5%50

    0%2

    0%4

    0%6

    0%8

    1

    1%2

    x-axis

    y-axis

    If

     

     A horizontal line means there is no

    association between two variables.

    Slope of

    Linear Regression

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    Significance Test in Simple

    Linear Regression

    The t-test is conducted for testing the significance of r todetermine if the relationship is not a zero correlation.

     

    Where:

    FO

     

    RM

    U

     

    L

    A

    1

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    Significance Test in Simple

    Linear Regression

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

     

    FO

     

    RM

    U

     

    L

    A

    2

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    ExampleGiven 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 wecan use the model to make such a prediction?

    Eatery 1 2 3 4 5 6 7 8 9 10

    x2 6 8 8 12 16 20 20 22 26

    y 58 105 88 118 117 137 157 169 149 202

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    2 58 116 4 3364

    6 105 630 36 11025

    8 88 704 64 7744

    8 118 944 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

    2 58 116 4 3364

    6 105 630 36 11025

    8 88 704 64 7744

    8 118 944 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

    Significance Test in Simple

    Linear Regression

     

    Given:

     

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    2 58 116 4 3364 70 144 144

    6 105 630 36 11025 90 64 225

    8 88 704 64 7744 100 36 144

    8 118 944 64 13924 100 36 324

    12 117 1404 144 13689 120 4 9

    16 137 2192 256 18769 140 4 9

    20 157 3140 400 24649 160 36 9

    20 169 3380 400 28561 160 36 81

    22 149 3278 484 22201 170 64 441

    26 202 5252 676 40804 190 144 144

    2 58 116 4 3364 70 144 144

    6 105 630 36 11025 90 64 225

    8 88 704 64 7744 100 36 144

    8 118 944 64 13924 100 36 324

    12 117 1404 144 13689 120 4 9

    16 137 2192 256 18769 140 4 9

    20 157 3140 400 24649 160 36 9

    20 169 3380 400 28561 160 36 81

    22 149 3278 484 22201 170 64 441

    26 202 5252 676 40804 190 144 144

    Significance Test in Simple

    Linear Regression

     

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    Since8.62 is greater than 3.355, wereject the H0 or accept the H1. Thus,

    the obtained relationship is

    significant or is non zero using .005level.

    We can conclude that we can usethe model to predict sales from

    population.

    Decision:

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    COMPUTATION USING

    MICROSOFT EXCEL

    Pearsonr

    Slopeb

    Intercepta

    Syntax

    +pearson(array1,array2) 

    or+correl(array1,array2)

    +slope(known_y’s,known_x’s)

    +intercept(known_y’s,known_x’s)

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    PEARSONr

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    SLOPEb INTERCEPTa

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    THANK YOU