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Using Regression to Describe Relationships in Data (Ch 3) ,[object Object],[object Object]
Using Simple Regression to Describe a Relationship ,[object Object],[object Object],[object Object]
Algebra refresher
Graph of An Exact Relationship  y = 1 + 2x x y 1 3 2 5 3 7 4 9 5 11 6 13
What about this?
Error in the Relationship ,[object Object],[object Object],[object Object],[object Object]
Graph of a Relationship That is NOT Exact Let us assume this relationshipis approximately y = 1 +1.25x x y 1 3 2 2 3 8 4 8 5 11 6 13
Residuals ,[object Object],[object Object],[object Object],[object Object]
Figure 3.3 Deviations From the Line - deviations + deviations
Computation Ideas (1) ,[object Object],[object Object]
Computation Ideas (2) ,[object Object],[object Object]
Computation Ideas (3) ,[object Object],[object Object]
Least Squares Estimators ,[object Object],[object Object],[object Object]
Figure 3.5  Computations  Required for  b 1  and  b 0 Totals x i y i x i 2 x i y i 1 3 1 3 2 2 4 4 3 8 9 24 4 8 16 32 5 11 25 55 6 13 36 78 21 45 91 196
Calculations _   _ b 0  = y – b 1  x =
The Unique Minimum ,[object Object],[object Object],[object Object]
We  statistical software!
Examples of Regression as a Descriptive Technique ,[object Object],[object Object]
Pricing a Computer Network ^ y   [Cost]  = 16594 + 650  [#computers]
Interpreting the equation in words… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],^ y   [Cost]  = 16594 + 650  [#computers]
Ex. Estimating Residential Real Estate Values ,[object Object],[object Object],[object Object]
Tarrant County Real Estate ^ y   [Value]  = -50035 + 72.8   [sq feet]
Interpreting the equation in words ,[object Object],[object Object],[object Object],[object Object],^ y   [Value]  = -50035 + 72.8   [sq feet]
Interpreting the equation in words ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Ex. Forecasting Housing Starts ,[object Object],[object Object]
US Housing Starts ^ y   [starts]  = 1726 - 22.2  [rates]
… does a relationship exist? ,[object Object],[object Object],[object Object]
[object Object]
The dependent variable is Wins ,[object Object],[object Object],[object Object]
Predict # calls by CSR in call center ,[object Object],[object Object],[object Object],[object Object],[object Object]
Assignment ,[object Object],[object Object],[object Object],[object Object],[object Object]

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2 simple regression

Editor's Notes

  1. Multiple Regression I