Enviar pesquisa
Carregar
Chap12 simple regression
•
Transferir como PPT, PDF
•
8 gostaram
•
15,046 visualizações
Uni Azza Aunillah
Seguir
Modul Statistik Bisnis II
Leia menos
Leia mais
Tecnologia
Denunciar
Compartilhar
Denunciar
Compartilhar
1 de 76
Baixar agora
Recomendados
Simple Linear Regression
Simple Linear Regression
Yesica Adicondro
Chap09 2 sample test
Chap09 2 sample test
Uni Azza Aunillah
Chap05 discrete probability distributions
Chap05 discrete probability distributions
Uni Azza Aunillah
Chap11 simple regression
Chap11 simple regression
Judianto Nugroho
Simple Regression
Simple Regression
Khawaja Naveed
Chap13 intro to multiple regression
Chap13 intro to multiple regression
Uni Azza Aunillah
Chap03 numerical descriptive measures
Chap03 numerical descriptive measures
Uni Azza Aunillah
Chap11 chie square & non parametrics
Chap11 chie square & non parametrics
Uni Azza Aunillah
Recomendados
Simple Linear Regression
Simple Linear Regression
Yesica Adicondro
Chap09 2 sample test
Chap09 2 sample test
Uni Azza Aunillah
Chap05 discrete probability distributions
Chap05 discrete probability distributions
Uni Azza Aunillah
Chap11 simple regression
Chap11 simple regression
Judianto Nugroho
Simple Regression
Simple Regression
Khawaja Naveed
Chap13 intro to multiple regression
Chap13 intro to multiple regression
Uni Azza Aunillah
Chap03 numerical descriptive measures
Chap03 numerical descriptive measures
Uni Azza Aunillah
Chap11 chie square & non parametrics
Chap11 chie square & non parametrics
Uni Azza Aunillah
Two-sample Hypothesis Tests
Two-sample Hypothesis Tests
mgbardossy
Basic Probability
Basic Probability
Yesica Adicondro
Chap08 fundamentals of hypothesis
Chap08 fundamentals of hypothesis
Uni Azza Aunillah
Bbs11 ppt ch14
Bbs11 ppt ch14
Tuul Tuul
Definition of statistical efficiency
Definition of statistical efficiency
RuhulAmin339
Linear regression
Linear regression
vermaumeshverma
Chap10 hypothesis testing ; additional topics
Chap10 hypothesis testing ; additional topics
Judianto Nugroho
Linear regression theory
Linear regression theory
Saurav Mukherjee
Chap06 normal distributions & continous
Chap06 normal distributions & continous
Uni Azza Aunillah
ECONOMETRICS
ECONOMETRICS
shiva murthy
Bernoullis Random Variables And Binomial Distribution
Bernoullis Random Variables And Binomial Distribution
mathscontent
R square vs adjusted r square
R square vs adjusted r square
Akhilesh Joshi
Probability distribution
Probability distribution
Rohit kumar
Correlation and Regression ppt
Correlation and Regression ppt
Santosh Bhaskar
Presentation On Regression
Presentation On Regression
alok tiwari
Chap01 intro & data collection
Chap01 intro & data collection
Uni Azza Aunillah
Multivariate analysis - Multiple regression analysis
Multivariate analysis - Multiple regression analysis
RaihanathusSahdhiyya
Basic business statistics 2
Basic business statistics 2
Anwar Afridi
Simple linear regression and correlation
Simple linear regression and correlation
Shakeel Nouman
Bbs11 ppt ch13
Bbs11 ppt ch13
Tuul Tuul
Chap14 multiple regression model building
Chap14 multiple regression model building
Uni Azza Aunillah
Simple linear regression (final)
Simple linear regression (final)
Harsh Upadhyay
Mais conteúdo relacionado
Mais procurados
Two-sample Hypothesis Tests
Two-sample Hypothesis Tests
mgbardossy
Basic Probability
Basic Probability
Yesica Adicondro
Chap08 fundamentals of hypothesis
Chap08 fundamentals of hypothesis
Uni Azza Aunillah
Bbs11 ppt ch14
Bbs11 ppt ch14
Tuul Tuul
Definition of statistical efficiency
Definition of statistical efficiency
RuhulAmin339
Linear regression
Linear regression
vermaumeshverma
Chap10 hypothesis testing ; additional topics
Chap10 hypothesis testing ; additional topics
Judianto Nugroho
Linear regression theory
Linear regression theory
Saurav Mukherjee
Chap06 normal distributions & continous
Chap06 normal distributions & continous
Uni Azza Aunillah
ECONOMETRICS
ECONOMETRICS
shiva murthy
Bernoullis Random Variables And Binomial Distribution
Bernoullis Random Variables And Binomial Distribution
mathscontent
R square vs adjusted r square
R square vs adjusted r square
Akhilesh Joshi
Probability distribution
Probability distribution
Rohit kumar
Correlation and Regression ppt
Correlation and Regression ppt
Santosh Bhaskar
Presentation On Regression
Presentation On Regression
alok tiwari
Chap01 intro & data collection
Chap01 intro & data collection
Uni Azza Aunillah
Multivariate analysis - Multiple regression analysis
Multivariate analysis - Multiple regression analysis
RaihanathusSahdhiyya
Basic business statistics 2
Basic business statistics 2
Anwar Afridi
Simple linear regression and correlation
Simple linear regression and correlation
Shakeel Nouman
Bbs11 ppt ch13
Bbs11 ppt ch13
Tuul Tuul
Mais procurados
(20)
Two-sample Hypothesis Tests
Two-sample Hypothesis Tests
Basic Probability
Basic Probability
Chap08 fundamentals of hypothesis
Chap08 fundamentals of hypothesis
Bbs11 ppt ch14
Bbs11 ppt ch14
Definition of statistical efficiency
Definition of statistical efficiency
Linear regression
Linear regression
Chap10 hypothesis testing ; additional topics
Chap10 hypothesis testing ; additional topics
Linear regression theory
Linear regression theory
Chap06 normal distributions & continous
Chap06 normal distributions & continous
ECONOMETRICS
ECONOMETRICS
Bernoullis Random Variables And Binomial Distribution
Bernoullis Random Variables And Binomial Distribution
R square vs adjusted r square
R square vs adjusted r square
Probability distribution
Probability distribution
Correlation and Regression ppt
Correlation and Regression ppt
Presentation On Regression
Presentation On Regression
Chap01 intro & data collection
Chap01 intro & data collection
Multivariate analysis - Multiple regression analysis
Multivariate analysis - Multiple regression analysis
Basic business statistics 2
Basic business statistics 2
Simple linear regression and correlation
Simple linear regression and correlation
Bbs11 ppt ch13
Bbs11 ppt ch13
Destaque
Chap14 multiple regression model building
Chap14 multiple regression model building
Uni Azza Aunillah
Simple linear regression (final)
Simple linear regression (final)
Harsh Upadhyay
Simple Linier Regression
Simple Linier Regression
dessybudiyanti
Regression analysis ppt
Regression analysis ppt
Elkana Rorio
Regression analysis
Regression analysis
Ravi shankar
Regression Analysis
Regression Analysis
nadiazaheer
Simple linear regression
Simple linear regression
Maria Theresa
Simple Linear Regression (simplified)
Simple Linear Regression (simplified)
Haoran Zhang
Chap15 time series forecasting & index number
Chap15 time series forecasting & index number
Uni Azza Aunillah
Linear regression
Linear regression
Tech_MX
Chap17 statistical applications on management
Chap17 statistical applications on management
Uni Azza Aunillah
Ch14
Ch14
Evil Man
Regression
Regression
mandrewmartin
Regression analysis
Regression analysis
saba khan
Lesson 8 Linear Correlation And Regression
Lesson 8 Linear Correlation And Regression
Sumit Prajapati
Chap16 decision making
Chap16 decision making
Uni Azza Aunillah
Chap19 time series-analysis_and_forecasting
Chap19 time series-analysis_and_forecasting
Vishal Kukreja
Bbs10 ppt ch16
Bbs10 ppt ch16
Anwar Afridi
Chapter13
Chapter13
rwmiller
Chapter13
Chapter13
Richard Ferreria
Destaque
(20)
Chap14 multiple regression model building
Chap14 multiple regression model building
Simple linear regression (final)
Simple linear regression (final)
Simple Linier Regression
Simple Linier Regression
Regression analysis ppt
Regression analysis ppt
Regression analysis
Regression analysis
Regression Analysis
Regression Analysis
Simple linear regression
Simple linear regression
Simple Linear Regression (simplified)
Simple Linear Regression (simplified)
Chap15 time series forecasting & index number
Chap15 time series forecasting & index number
Linear regression
Linear regression
Chap17 statistical applications on management
Chap17 statistical applications on management
Ch14
Ch14
Regression
Regression
Regression analysis
Regression analysis
Lesson 8 Linear Correlation And Regression
Lesson 8 Linear Correlation And Regression
Chap16 decision making
Chap16 decision making
Chap19 time series-analysis_and_forecasting
Chap19 time series-analysis_and_forecasting
Bbs10 ppt ch16
Bbs10 ppt ch16
Chapter13
Chapter13
Chapter13
Chapter13
Semelhante a Chap12 simple regression
chap12.pptx
chap12.pptx
SoujanyaLk1
multiple regression model building
multiple regression model building
Yesica Adicondro
Introduction to Multiple Regression
Introduction to Multiple Regression
Yesica Adicondro
Numerical Descriptive Measures
Numerical Descriptive Measures
Yesica Adicondro
Chap10 anova
Chap10 anova
Uni Azza Aunillah
Newbold_chap12.ppt
Newbold_chap12.ppt
cfisicaster
The Normal Distribution and Other Continuous Distributions
The Normal Distribution and Other Continuous Distributions
Yesica Adicondro
Analysis of Variance
Analysis of Variance
Yesica Adicondro
lecture No. 3a.ppt
lecture No. 3a.ppt
HamidUllah50
Chapter 4 power point presentation Regression models
Chapter 4 power point presentation Regression models
JustinXerri
Chi square using excel
Chi square using excel
vermaumeshverma
2.1 regression
2.1 regression
Manish Gupta
Fundamentals of Testing Hypothesis
Fundamentals of Testing Hypothesis
Yesica Adicondro
simple regression-1.pdf
simple regression-1.pdf
BabulShaikh1
Regression analysis in excel
Regression analysis in excel
Thilina Rathnayaka
04 regression
04 regression
Firas Husseini
Multiple Regression.ppt
Multiple Regression.ppt
TanyaWadhwani4
Rsh qam11 ch04 ge
Rsh qam11 ch04 ge
Firas Husseini
Lecture - 8 MLR.pptx
Lecture - 8 MLR.pptx
iris765749
Lesson07_new
Lesson07_new
shengvn
Semelhante a Chap12 simple regression
(20)
chap12.pptx
chap12.pptx
multiple regression model building
multiple regression model building
Introduction to Multiple Regression
Introduction to Multiple Regression
Numerical Descriptive Measures
Numerical Descriptive Measures
Chap10 anova
Chap10 anova
Newbold_chap12.ppt
Newbold_chap12.ppt
The Normal Distribution and Other Continuous Distributions
The Normal Distribution and Other Continuous Distributions
Analysis of Variance
Analysis of Variance
lecture No. 3a.ppt
lecture No. 3a.ppt
Chapter 4 power point presentation Regression models
Chapter 4 power point presentation Regression models
Chi square using excel
Chi square using excel
2.1 regression
2.1 regression
Fundamentals of Testing Hypothesis
Fundamentals of Testing Hypothesis
simple regression-1.pdf
simple regression-1.pdf
Regression analysis in excel
Regression analysis in excel
04 regression
04 regression
Multiple Regression.ppt
Multiple Regression.ppt
Rsh qam11 ch04 ge
Rsh qam11 ch04 ge
Lecture - 8 MLR.pptx
Lecture - 8 MLR.pptx
Lesson07_new
Lesson07_new
Mais de Uni Azza Aunillah
Chap07 interval estimation
Chap07 interval estimation
Uni Azza Aunillah
Chap02 presenting data in chart & tables
Chap02 presenting data in chart & tables
Uni Azza Aunillah
Chap04 basic probability
Chap04 basic probability
Uni Azza Aunillah
Chap02 presenting data in chart & tables
Chap02 presenting data in chart & tables
Uni Azza Aunillah
Advertising
Advertising
Uni Azza Aunillah
Clr model
Clr model
Uni Azza Aunillah
Equation
Equation
Uni Azza Aunillah
Saluran distribusi
Saluran distribusi
Uni Azza Aunillah
Mengintegrasikan teori
Mengintegrasikan teori
Uni Azza Aunillah
Kepemimpinen Dahlan Iskan
Kepemimpinen Dahlan Iskan
Uni Azza Aunillah
presentation listening and summarize
presentation listening and summarize
Uni Azza Aunillah
Perbankan syariah
Perbankan syariah
Uni Azza Aunillah
Uu bi no 3 tahun 2004
Uu bi no 3 tahun 2004
Uni Azza Aunillah
Modul ekonomi moneter
Modul ekonomi moneter
Uni Azza Aunillah
Teori manajemen klasik
Teori manajemen klasik
Uni Azza Aunillah
Proses pengawasan dalam manajemen
Proses pengawasan dalam manajemen
Uni Azza Aunillah
Etika bisnis dalam lingkungan produksi
Etika bisnis dalam lingkungan produksi
Uni Azza Aunillah
Mais de Uni Azza Aunillah
(17)
Chap07 interval estimation
Chap07 interval estimation
Chap02 presenting data in chart & tables
Chap02 presenting data in chart & tables
Chap04 basic probability
Chap04 basic probability
Chap02 presenting data in chart & tables
Chap02 presenting data in chart & tables
Advertising
Advertising
Clr model
Clr model
Equation
Equation
Saluran distribusi
Saluran distribusi
Mengintegrasikan teori
Mengintegrasikan teori
Kepemimpinen Dahlan Iskan
Kepemimpinen Dahlan Iskan
presentation listening and summarize
presentation listening and summarize
Perbankan syariah
Perbankan syariah
Uu bi no 3 tahun 2004
Uu bi no 3 tahun 2004
Modul ekonomi moneter
Modul ekonomi moneter
Teori manajemen klasik
Teori manajemen klasik
Proses pengawasan dalam manajemen
Proses pengawasan dalam manajemen
Etika bisnis dalam lingkungan produksi
Etika bisnis dalam lingkungan produksi
Último
Are Multi-Cloud and Serverless Good or Bad?
Are Multi-Cloud and Serverless Good or Bad?
Mattias Andersson
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
Sri Ambati
Advanced Computer Architecture – An Introduction
Advanced Computer Architecture – An Introduction
Dilum Bandara
TrustArc Webinar - How to Build Consumer Trust Through Data Privacy
TrustArc Webinar - How to Build Consumer Trust Through Data Privacy
TrustArc
Advanced Test Driven-Development @ php[tek] 2024
Advanced Test Driven-Development @ php[tek] 2024
Scott Keck-Warren
TeamStation AI System Report LATAM IT Salaries 2024
TeamStation AI System Report LATAM IT Salaries 2024
Lonnie McRorey
"Debugging python applications inside k8s environment", Andrii Soldatenko
"Debugging python applications inside k8s environment", Andrii Soldatenko
Fwdays
Artificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptx
hariprasad279825
The Ultimate Guide to Choosing WordPress Pros and Cons
The Ultimate Guide to Choosing WordPress Pros and Cons
Pixlogix Infotech
DMCC Future of Trade Web3 - Special Edition
DMCC Future of Trade Web3 - Special Edition
Dubai Multi Commodity Centre
Designing IA for AI - Information Architecture Conference 2024
Designing IA for AI - Information Architecture Conference 2024
Enterprise Knowledge
Hyperautomation and AI/ML: A Strategy for Digital Transformation Success.pdf
Hyperautomation and AI/ML: A Strategy for Digital Transformation Success.pdf
Precisely
SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024
Lorenzo Miniero
CloudStudio User manual (basic edition):
CloudStudio User manual (basic edition):
comworks
Search Engine Optimization SEO PDF for 2024.pdf
Search Engine Optimization SEO PDF for 2024.pdf
RankYa
Take control of your SAP testing with UiPath Test Suite
Take control of your SAP testing with UiPath Test Suite
DianaGray10
Story boards and shot lists for my a level piece
Story boards and shot lists for my a level piece
charlottematthew16
Developer Data Modeling Mistakes: From Postgres to NoSQL
Developer Data Modeling Mistakes: From Postgres to NoSQL
ScyllaDB
Scanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL Certs
Rizwan Syed
Anypoint Exchange: It’s Not Just a Repo!
Anypoint Exchange: It’s Not Just a Repo!
Manik S Magar
Último
(20)
Are Multi-Cloud and Serverless Good or Bad?
Are Multi-Cloud and Serverless Good or Bad?
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
Advanced Computer Architecture – An Introduction
Advanced Computer Architecture – An Introduction
TrustArc Webinar - How to Build Consumer Trust Through Data Privacy
TrustArc Webinar - How to Build Consumer Trust Through Data Privacy
Advanced Test Driven-Development @ php[tek] 2024
Advanced Test Driven-Development @ php[tek] 2024
TeamStation AI System Report LATAM IT Salaries 2024
TeamStation AI System Report LATAM IT Salaries 2024
"Debugging python applications inside k8s environment", Andrii Soldatenko
"Debugging python applications inside k8s environment", Andrii Soldatenko
Artificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptx
The Ultimate Guide to Choosing WordPress Pros and Cons
The Ultimate Guide to Choosing WordPress Pros and Cons
DMCC Future of Trade Web3 - Special Edition
DMCC Future of Trade Web3 - Special Edition
Designing IA for AI - Information Architecture Conference 2024
Designing IA for AI - Information Architecture Conference 2024
Hyperautomation and AI/ML: A Strategy for Digital Transformation Success.pdf
Hyperautomation and AI/ML: A Strategy for Digital Transformation Success.pdf
SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024
CloudStudio User manual (basic edition):
CloudStudio User manual (basic edition):
Search Engine Optimization SEO PDF for 2024.pdf
Search Engine Optimization SEO PDF for 2024.pdf
Take control of your SAP testing with UiPath Test Suite
Take control of your SAP testing with UiPath Test Suite
Story boards and shot lists for my a level piece
Story boards and shot lists for my a level piece
Developer Data Modeling Mistakes: From Postgres to NoSQL
Developer Data Modeling Mistakes: From Postgres to NoSQL
Scanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL Certs
Anypoint Exchange: It’s Not Just a Repo!
Anypoint Exchange: It’s Not Just a Repo!
Chap12 simple regression
1.
Statistics for Managers Using
Microsoft® Excel 4th Edition Chapter 12 Simple Linear Regression Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-1
2.
Chapter Goals After completing
this chapter, you should be able to: Explain the simple linear regression model Obtain and interpret the simple linear regression equation for a set of data Evaluate regression residuals for aptness of the fitted model Understand the assumptions behind regression analysis Explain measures of Statistics for Managers Usingvariation and determine whether the independent variable is significant Microsoft Excel, 4e © 2004 Chap 12-2 Prentice-Hall, Inc.
3.
Chapter Goals (continued) After completing
this chapter, you should be able to: Calculate and interpret confidence intervals for the regression coefficients Use the Durbin-Watson statistic to check for autocorrelation Form confidence and prediction intervals around an estimated Y value for a given X Recognize some potential problems if regression analysis is used incorrectly Statistics for Managers Using Microsoft Excel, 4e © 2004 Chap 12-3 Prentice-Hall, Inc.
4.
Correlation vs. Regression A
scatter plot (or scatter diagram) can be used to show the relationship between two variables Correlation analysis is used to measure strength of the association (linear relationship) between two variables Correlation is only concerned with strength of the relationship No causal effect is implied with correlation Correlation was first Statistics for Managers Using presented in Chapter 3 Microsoft Excel, 4e © 2004 Chap 12-4 Prentice-Hall, Inc.
5.
Introduction to Regression Analysis Regression
analysis is used to: Predict the value of a dependent variable based on the value of at least one independent variable Explain the impact of changes in an independent variable on the dependent variable Dependent variable: the variable we wish to explain Independent variable: the variable used to explain the dependent variable Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-5
6.
Simple Linear Regression Model Only
one independent variable, X Relationship between X and Y is described by a linear function Changes in Y are assumed to be caused by changes in X Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-6
7.
Types of Relationships Linear
relationships Y Curvilinear relationships Y X Y Statistics for Managers Using X Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. X Y X Chap 12-7
8.
Types of Relationships (continued) Strong
relationships Y Weak relationships Y X Y Statistics for Managers Using X Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. X Y X Chap 12-8
9.
Types of Relationships (continued) No
relationship Y X Y Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. X Chap 12-9
10.
Simple Linear Regression Model The
population regression model: Population Y intercept Dependent Variable Population Slope Coefficient Independent Variable Random Error term Yi = β0 + β1Xi + ε i Linear component Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Random Error component Chap 12-10
11.
Simple Linear Regression Model (continued) Y Yi
= β0 + β1Xi + ε i Observed Value of Y for Xi Predicted Value of Y for Xi εi Slope = β1 Random Error for this Xi value Intercept = β0 Statistics for Managers Using X Microsoft Excel, 4e © 2004 i Prentice-Hall, Inc. X Chap 12-11
12.
Simple Linear Regression Equation The
simple linear regression equation provides an estimate of the population regression line Estimated (or predicted) Y value for observation i Estimate of the regression Estimate of the regression slope intercept ˆ =b +b X Yi 0 1 i Value of X for observation i Statistics TheManagers Using for individual random error terms ei have a mean of zero Microsoft Excel, 4e © 2004 Chap 12-12 Prentice-Hall, Inc.
13.
Least Squares Method b0
and b1 are obtained by finding the values of b0 and b1 that minimize the sum of the ˆ Y squared differences between Y and : ˆ )2 = min ∑ (Y − (b + b X ))2 min ∑ (Yi −Yi i 0 1 i Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-13
14.
Finding the Least
Squares Equation The coefficients b0 and b1 , and other regression results in this chapter, will be found using Excel Formulas are shown in the text at the end of the chapter for those who are interested Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-14
15.
Interpretation of the Slope
and the Intercept b0 is the estimated average value of Y when the value of X is zero b1 is the estimated change in the average value of Y as a result of a one-unit change in X Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-15
16.
Simple Linear Regression Example A
real estate agent wishes to examine the relationship between the selling price of a home and its size (measured in square feet) A random sample of 10 houses is selected Dependent variable (Y) = house price in $1000s Independent variable (X) = square feet Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-16
17.
Sample Data for
House Price Model House Price in $1000s (Y) Square Feet (X) 245 1400 312 1600 279 1700 308 1875 199 1100 219 1550 405 2350 324 2450 319 1425 255 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 1700 Chap 12-17
18.
Graphical Presentation House Price
($1000s) House price model: scatter plot 450 400 350 300 250 200 150 100 50 0 0 500 1000 1500 2000 Square Feet Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 2500 3000 Chap 12-18
19.
Regression Using Excel Tools
/ Data Analysis / Regression Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-19
20.
Excel Output Regression Statistics Multiple
R 0.76211 R Square 0.58082 Adjusted R Square 0.52842 Standard Error The regression equation is: house price = 98.24833 + 0.10977 (square feet) 41.33032 Observations 10 ANOVA df SS MS F 11.0848 Regression 1 18934.9348 18934.9348 Residual 8 13665.5652 1708.1957 Total 9 Significance F 32600.5000 Coefficients Intercept 98.24833 Standard Error t Stat P-value 0.01039 Lower 95% Upper 95% 58.03348 1.69296 0.12892 -35.57720 232.07386 Square Feet 0.10977 0.03297 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 3.32938 0.01039 0.03374 0.18580 Chap 12-20
21.
Graphical Presentation House price
model: scatter plot and regression line 450 House Price ($1000s) Intercept = 98.248 400 350 300 250 200 150 100 50 0 Slope = 0.10977 0 500 1000 1500 2000 2500 3000 Square Feet Statistics for Managers Using house price = 98.24833 + 0.10977 (square feet) Microsoft Excel, 4e © 2004 Chap 12-21 Prentice-Hall, Inc.
22.
Interpretation of the Intercept,
b0 house price = 98.24833 + 0.10977 (square feet) b0 is the estimated average value of Y when the value of X is zero (if X = 0 is in the range of observed X values) Here, no houses had 0 square feet, so b0 = 98.24833 just indicates that, for houses within the range of sizes observed, $98,248.33 is the portion of the house price not explained by square feet Statistics for Managers Using Microsoft Excel, 4e © 2004 Chap 12-22 Prentice-Hall, Inc.
23.
Interpretation of the Slope
Coefficient, b1 house price = 98.24833 + 0.10977 (square feet) b1 measures the estimated change in the average value of Y as a result of a oneunit change in X Here, b1 = .10977 tells us that the average value of a house increases by .10977($1000) = $109.77, on average, for each additional one square foot of size Statistics for Managers Using Microsoft Excel, 4e © 2004 Chap 12-23 Prentice-Hall, Inc.
24.
Predictions using Regression Analysis Predict
the price for a house with 2000 square feet: house price = 98.25 + 0.1098 (sq.ft.) = 98.25 + 0.1098(200 0) = 317.85 The predicted price for a house with 2000 Statistics forfeet is 317.85($1,000s) = $317,850 square Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-24
25.
Interpolation vs. Extrapolation When
using a regression model for prediction, only predict within the relevant range of data House Price ($1000s) Relevant range for interpolation 450 400 350 300 250 200 150 100 50 0 Statistics for Managers Using 0 Microsoft 500 1000 4e © 2004 2500 Excel, 1500 2000 Square Prentice-Hall, Inc. Feet 3000 Do not try to extrapolate beyond the range of observed X’s Chap 12-25
26.
Measures of Variation Total
variation is made up of two parts: SST = SSR + Total Sum of Squares Regression Sum of Squares SST = ∑ ( Yi − Y )2 ˆ SSR = ∑ ( Yi − Y )2 SSE Error Sum of Squares ˆ SSE = ∑ ( Yi − Yi )2 where: Y = Average value of the dependent variable Statistics for Managers Observed values of the dependent variable Yi = Using ˆ Microsoft Excel, 4e © 2004 Y = Predicted value of Y for the given X value i Chap 12-26 Prentice-Hall, Inc. i
27.
Measures of Variation (continued) SST
= total sum of squares SSR = regression sum of squares Measures the variation of the Yi values around their mean Y Explained variation attributable to the relationship between X and Y SSE = error sum of squares Variation attributable to factors other than the relationship between Statistics for Managers Using X and Y Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-27
28.
Measures of Variation (continued) Y Yi _ ∧ Y ∧ SSE
= ∑(Yi - Yi )2 ∧ Y SST = ∑(Yi - Y)2 _ Y Statistics for Managers Using Microsoft Excel, 4e © 2004Xi Prentice-Hall, Inc. ∧ _ SSR = ∑(Yi - Y)2 _ Y X Chap 12-28
29.
Coefficient of Determination,
r2 The coefficient of determination is the portion of the total variation in the dependent variable that is explained by variation in the independent variable The coefficient of determination is also called r-squared and is denoted as r2 SSR regression sum of squares r = = SST total sum of squares 2 Statistics for Managers Using note: 0 ≤ r 2 Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. ≤1 Chap 12-29
30.
Examples of Approximate r2
Values Y r2 = 1 r2 = 1 X Y Statistics for ManagersX Using r2 = 1 Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Perfect linear relationship between X and Y: 100% of the variation in Y is explained by variation in X Chap 12-30
31.
Examples of Approximate r2
Values Y 0 < r2 < 1 X Y Statistics for Managers Using X Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Weaker linear relationships between X and Y: Some but not all of the variation in Y is explained by variation in X Chap 12-31
32.
Examples of Approximate r2
Values r2 = 0 Y No linear relationship between X and Y: r2 = 0 X Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. The value of Y does not depend on X. (None of the variation in Y is explained by variation in X) Chap 12-32
33.
Excel Output SSR 18934.9348 r
= = = 0.58082 SST 32600.5000 2 Regression Statistics Multiple R 0.76211 R Square 0.58082 Adjusted R Square 0.52842 Standard Error 58.08% of the variation in house prices is explained by variation in square feet 41.33032 Observations 10 ANOVA df SS MS F 11.0848 Regression 1 18934.9348 18934.9348 Residual 8 13665.5652 1708.1957 Total 9 Significance F 32600.5000 Coefficients Intercept 98.24833 Standard Error t Stat P-value 0.01039 Lower 95% Upper 95% 58.03348 1.69296 0.12892 -35.57720 232.07386 Square Feet 0.10977 0.03297 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 3.32938 0.01039 0.03374 0.18580 Chap 12-33
34.
Standard Error of
Estimate The standard deviation of the variation of observations around the regression line is estimated by n S YX SSE = = n−2 ˆ ( Yi − Yi )2 ∑ i=1 n−2 Where SSE = error sum of squares n = Using Managerssample size Statistics for Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-34
35.
Excel Output Regression Statistics Multiple
R 0.76211 R Square 0.58082 Adjusted R Square S YX = 41.33032 0.52842 Standard Error 41.33032 Observations 10 ANOVA df SS MS F 11.0848 Regression 1 18934.9348 18934.9348 Residual 8 13665.5652 1708.1957 Total 9 Significance F 32600.5000 Coefficients Intercept 98.24833 Standard Error t Stat P-value 0.01039 Lower 95% Upper 95% 58.03348 1.69296 0.12892 -35.57720 232.07386 Square Feet 0.10977 0.03297 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 3.32938 0.01039 0.03374 0.18580 Chap 12-35
36.
Comparing Standard Errors SYX
is a measure of the variation of observed Y values from the regression line Y Y small s YX X large s YX X The magnitude of SYX should always be judged relative to the size of the Y values in the sample data Statistics for Managersis moderately small relative to house prices in i.e., SYX = $41.33K Using Microsoft Excel,$300K range the $200 - 4e © 2004 Chap 12-36 Prentice-Hall, Inc.
37.
Assumptions of Regression Normality
of Error Homoscedasticity Error values (ε) are normally distributed for any given value of X The probability distribution of the errors has constant variance Independence of Errors Error values are statistically independent Statistics for Managers Using Microsoft Excel, 4e © 2004 Chap 12-37 Prentice-Hall, Inc.
38.
Residual Analysis ˆ ei =
Yi − Yi The residual for observation i, ei, is the difference between its observed and predicted value Check the assumptions of regression by examining the residuals Examine for linearity assumption Examine for constant variance for all levels of X (homoscedasticity) Evaluate normal distribution assumption Evaluate independence assumption Statistics for Managers Using Graphical Analysis of Residuals Microsoft Can plot4e © 2004 X Excel, residuals vs. Prentice-Hall, Inc. Chap 12-38
39.
Residual Analysis for
Linearity Y Y Statistics for Managers Using Not 4e © Microsoft Excel,Linear2004 Prentice-Hall, Inc. x x residuals residuals x x Linear Chap 12-39
40.
Residual Analysis for Homoscedasticity Y Y x x Statistics
for Managers Using Non-constant variance Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. residuals residuals x x Constant variance Chap 12-40
41.
Residual Analysis for Independence Not
Independent X Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. residuals residuals X residuals Independent X Chap 12-41
42.
Excel Residual Output House
Price Model Residual Plot RESIDUAL OUTPUT Predicted House Price Residuals 251.92316 -6.923162 2 273.87671 38.12329 3 284.85348 -5.853484 4 304.06284 3.937162 5 218.99284 -19.99284 60 40 Residuals 1 80 20 0 6 268.38832 -49.38832 -20 7 356.20251 48.79749 367.17929 -43.17929 254.6674 64.33264 2000 3000 -60 9 1000 -40 8 0 10 284.85348 -29.85348 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Square Feet Does not appear to violate any regression assumptions Chap 12-42
43.
Measuring Autocorrelation: The Durbin-Watson
Statistic Used when data are collected over time to detect if autocorrelation is present Autocorrelation exists if residuals in one time period are related to residuals in another period Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-43
44.
Autocorrelation Autocorrelation is correlation
of the errors (residuals) over time Time (t) Residual Plot Here, residuals show a cyclic pattern, not random Residuals 15 10 5 0 -5 0 2 4 6 8 -10 -15 Time (t) Violates the regression assumption that Statistics for Managers Using residuals are random and independent Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-44
45.
The Durbin-Watson Statistic The
Durbin-Watson statistic is used to test for autocorrelation H0: residuals are not correlated H1: autocorrelation is present n D= ∑ (e − e i= 2 i i −1 ) 2 n ei2 ∑ i=1 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. The possible range is 0 ≤ D ≤ 4 D should be close to 2 if H0 is true D less than 2 may signal positive autocorrelation, D greater than 2 may signal negative autocorrelation Chap 12-45
46.
Testing for Positive Autocorrelation H0:
positive autocorrelation does not exist H1: positive autocorrelation is present Calculate the Durbin-Watson test statistic = D (The Durbin-Watson Statistic can be found using PHStat in Excel) Find the values dL and dU from the Durbin-Watson table (for sample size n and number of independent variables k) Decision rule: reject H0 if D < dL Reject H0 Inconclusive Statistics for Managers Using dL Microsoft 0 Excel, 4e © 2004 Prentice-Hall, Inc. Do not reject H0 dU 2 Chap 12-46
47.
Testing for Positive Autocorrelation (continued) 160 Example
with n = 25: 140 120 Excel/PHStat output: 100 Sales Durbin-Watson Calculations 3296.18 y = 30.65 + 4.7038x 60 Sum of Squared Difference of Residuals 80 R = 0.8976 2 40 20 Sum of Squared Residuals 3279.98 0 0 Durbin-Watson Statistic 1.00494 n ∑ (e − e i i −1 5 10 15 20 25 Tim e )2 3296.18 D = i=2 n Using = = 1.00494 Statistics for Managers 2 3279.98 ei ∑ Microsoft Excel, 4e © 2004 i =1 Prentice-Hall, Inc. Chap 12-47 30
48.
Testing for Positive Autocorrelation (continued) Here,
n = 25 and there is k = 1 one independent variable Using the Durbin-Watson table, dL = 1.29 and dU = 1.45 D = 1.00494 < dL = 1.29, so reject H0 and conclude that significant positive autocorrelation exists Therefore the linear model is not the appropriate model to forecast sales Decision: reject H0 since D = 1.00494 < dL Reject H0 Inconclusive Statistics for Managers Using dL=1.29 0 Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Do not reject H0 dU=1.45 2 Chap 12-48
49.
Inferences About the
Slope The standard error of the regression slope coefficient (b1) is estimated by S YX Sb1 = = SSX S YX ∑ (X − X) 2 i where: Sb1 = Estimate of the standard error of the least squares slope SSE Statistics for Managers Using error of the estimate S YX = = Standard Microsoft Excel,−4e © 2004 n 2 Prentice-Hall, Inc. Chap 12-49
50.
Excel Output Regression Statistics Multiple
R 0.76211 R Square 0.58082 Adjusted R Square 0.52842 Standard Error Sb1 = 0.03297 41.33032 Observations 10 ANOVA df SS MS F 11.0848 Regression 1 18934.9348 18934.9348 Residual 8 13665.5652 1708.1957 Total 9 Significance F 32600.5000 Coefficients Intercept 98.24833 Standard Error t Stat P-value 0.01039 Lower 95% Upper 95% 58.03348 1.69296 0.12892 -35.57720 232.07386 Square Feet 0.10977 0.03297 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 3.32938 0.01039 0.03374 0.18580 Chap 12-50
51.
Comparing Standard Errors
of the Slope Sb1 is a measure of the variation in the slope of regression lines from different possible samples Y Y small Sb1 X Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. large Sb1 X Chap 12-51
52.
Inference about the
Slope: t Test t test for a population slope Is there a linear relationship between X and Y? Null and alternative hypotheses H0: β1 = 0 H1: β1 ≠ 0 (no linear relationship) (linear relationship does exist) Test statistic b1 − β1 t= Sb1 Statistics for Managers Using d.f. Microsoft Excel, 4e © 2004= n − 2 Prentice-Hall, Inc. where: b1 = regression slope coefficient β1 = hypothesized slope Sb1 = standard error of the slope Chap 12-52
53.
Inference about the
Slope: t Test (continued) House Price in $1000s (y) Square Feet (x) 245 1400 312 1600 279 1700 308 1875 199 1100 219 1550 405 2350 324 2450 319 1425 255 Estimated Regression Equation: 1700 house price = 98.25 + 0.1098 (sq.ft.) The slope of this model is 0.1098 Does square footage of the house affect its sales price? Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-53
54.
Inferences about the
Slope: t Test Example H0: β1 = 0 From Excel output: H1: β1 ≠ 0 Coefficients Intercept Square Feet Sb1 b1 Standard Error t Stat P-value 98.24833 58.03348 1.69296 0.12892 0.10977 0.03297 3.32938 0.01039 b1 − β1 0.10977 − 0 t= = = 3.32938 t Sb1 0.03297 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-54
55.
Inferences about the
Slope: t Test Example (continued) Test Statistic: t = 3.329 H0: β1 = 0 From Excel output: H1: β1 ≠ 0 Coefficients Intercept Sb1 b1 Standard Error t t Stat P-value 98.24833 Square Feet 58.03348 1.69296 0.12892 0.10977 0.03297 3.32938 0.01039 d.f. = 10-2 = 8 Decision: α/2=.025 α/2=.025 Reject H0 Conclusion: There is sufficient evidence Reject H Do not reject H Reject H -tα/2 tα/2 Statistics for Managers Using 0 that square footage affects -2.3060 Microsoft Excel, 2.30602004 4e © 3.329 house price 0 0 Prentice-Hall, Inc. 0 Chap 12-55
56.
Inferences about the
Slope: t Test Example (continued) P-value = 0.01039 H0: β1 = 0 From Excel output: H1: β1 ≠ 0 Coefficients P-value Intercept Square Feet Standard Error t Stat P-value 98.24833 58.03348 1.69296 0.12892 0.10977 0.03297 3.32938 0.01039 This is a two-tail test, so the p-value is Decision: P-value < α so Reject H0 P(t > 3.329)+P(t < -3.329) Conclusion: = 0.01039 There is sufficient evidence Statistics for Managers Using that square footage affects (for 8 d.f.) Microsoft Excel, 4e © 2004 house price Prentice-Hall, Inc. Chap 12-56
57.
F-Test for Significance F
Test statistic: F = MSR MSE where MSR = SSR k MSE = SSE n − k −1 where F follows an F distribution with k numerator and (n – k - 1) denominator degrees of freedom Statisticsthe number of independent variables in the regression model) for Managers Using (k = Microsoft Excel, 4e © 2004 Chap 12-57 Prentice-Hall, Inc.
58.
Excel Output Regression Statistics Multiple
R 0.76211 R Square 0.58082 Adjusted R Square 0.52842 Standard Error MSR 18934.9348 F= = = 11.0848 MSE 1708.1957 41.33032 Observations 10 With 1 and 8 degrees of freedom P-value for the F-Test ANOVA df SS MS F 11.0848 Regression 1 18934.9348 18934.9348 Residual 8 13665.5652 1708.1957 Total 9 Significance F 32600.5000 Coefficients Intercept 98.24833 Standard Error t Stat P-value 0.01039 Lower 95% Upper 95% 58.03348 1.69296 0.12892 -35.57720 232.07386 Square Feet 0.10977 0.03297 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. 3.32938 0.01039 0.03374 0.18580 Chap 12-58
59.
F-Test for Significance (continued) Test
Statistic: H0: β1 = 0 MSR F= = 11.08 MSE H1: β1 ≠ 0 α = .05 df1= 1 df2 = 8 Decision: Reject H0 at α = 0.05 Critical Value: Fα = 5.32 Conclusion: α = .05 0 Do not F Statistics for Managers Using Reject H reject H Microsoft Excel, 4e © 2004 F.05 = 5.32 Prentice-Hall, Inc. There is sufficient evidence that house size affects selling price 0 0 Chap 12-59
60.
Confidence Interval Estimate for
the Slope Confidence Interval Estimate of the Slope: b1 ± t n−2Sb1 d.f. = n - 2 Excel Printout for House Prices: Coefficients Intercept Square Feet Standard Error t Stat P-value Lower 95% Upper 95% 98.24833 58.03348 1.69296 0.12892 -35.57720 232.07386 0.10977 0.03297 3.32938 0.01039 0.03374 0.18580 At 95% level of confidence, the confidence interval for the slope is (0.0337, 0.1858) Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-60
61.
Confidence Interval Estimate for
the Slope (continued) Coefficients Intercept Standard Error t Stat P-value Lower 95% Upper 95% 98.24833 Square Feet 58.03348 1.69296 0.12892 -35.57720 232.07386 0.10977 0.03297 3.32938 0.01039 0.03374 0.18580 Since the units of the house price variable is $1000s, we are 95% confident that the average impact on sales price is between $33.70 and $185.80 per square foot of house size This 95% confidence interval does not include 0. Conclusion: There is a significant relationship between Statistics for Managers Using at the .05 level of significance house price and square feet Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-61
62.
t Test for
a Correlation Coefficient Hypotheses H0: ρ = 0 HA: ρ ≠ 0 (no correlation between X and Y) (correlation exists) Test statistic t= r -ρ 1− r n−2 2 Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. (with n – 2 degrees of freedom) where r = + r 2 if b1 > 0 r = − r 2 if b1 < 0 Chap 12-62
63.
Example: House Prices Is
there evidence of a linear relationship between square feet and house price at the .05 level of significance? H0: ρ = 0 (No correlation) H1: ρ ≠ 0 (correlation exists) α =.05 , df = 10 - 2 = 8 t= r −ρ = .762 − 0 1− r 2 1 − .762 2 Statistics for Managers Using n−2 10 − 2 Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. = 3.33 Chap 12-63
64.
Example: Test Solution t= r
−ρ 1− r 2 n−2 = .762 − 0 1 − .762 2 10 − 2 = 3.33 Conclusion: There is evidence of a linear association at the 5% level of significance d.f. = 10-2 = 8 α/2=.025 Reject H0 α/2=.025 Do not reject H0 -t 0 Statistics α/2 Managers for -2.3060 Reject H0 t Using α/2 2.3060 Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Decision: Reject H0 3.33 Chap 12-64
65.
Estimating Mean Values
and Predicting Individual Values Goal: Form intervals around Y to express uncertainty about the value of Y for a given Xi Confidence Interval for the mean of Y, given Xi Y ∧ Y ∧ Y = b0+b1Xi Prediction Interval Statistics for Managers Using for an individual Y, Microsoft Excel, 4e © 2004 given Xi Prentice-Hall, Inc. Xi X Chap 12-65
66.
Confidence Interval for the
Average Y, Given X Confidence interval estimate for the mean value of Y given a particular Xi Confidence interval for μY|X= Xi : ˆ Y ± t n−2S YX hi Size of interval varies according to distance away from mean, X 1 (XiUsing 1 − X )2 (Xi − X)2 Statistics for h = + Managers = + i n SSX n ∑ (Xi − X)2 Microsoft Excel, 4e © 2004 Chap 12-66 Prentice-Hall, Inc.
67.
Prediction Interval for an
Individual Y, Given X Confidence interval estimate for an Individual value of Y given a particular Xi Confidence interval for YX = Xi : ˆ Y ± t n−2S YX 1 + hi This extra term adds to the interval width to reflect the added uncertainty for an individual case Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-67
68.
Estimation of Mean
Values: Example Confidence Interval Estimate for μY|X=X i Find the 95% confidence interval for the mean price of 2,000 square-foot houses ∧ Predicted Price Yi = 317.85 ($1,000s) ˆ Y ± t n-2S YX 1 (Xi − X)2 + = 317.85 ± 37.12 2 n ∑ (Xi − X) The confidence interval endpoints are 280.66 and 354.90, Statistics for Managers Using or from $280,660 to $354,900 Microsoft Excel, 4e © 2004 Chap 12-68 Prentice-Hall, Inc.
69.
Estimation of Individual
Values: Example Prediction Interval Estimate for YX=X i Find the 95% prediction interval for an individual house with 2,000 square feet ∧ Predicted Price Yi = 317.85 ($1,000s) ˆ Y ± t n-1S YX 1 (Xi − X)2 1+ + = 317.85 ± 102.28 2 n ∑ (Xi − X) The prediction interval endpoints are 215.50 and 420.07, Statistics for Managers Using or from $215,500 to $420,070 Microsoft Excel, 4e © 2004 Chap 12-69 Prentice-Hall, Inc.
70.
Finding Confidence and Prediction
Intervals in Excel In Excel, use PHStat | regression | simple linear regression … Check the “confidence and prediction interval for X=” box and enter the X-value and confidence level desired Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-70
71.
Finding Confidence and Prediction
Intervals in Excel (continued) Input values ∧ Y Confidence Interval Estimate for μY|X=Xi Statistics for Managers Using Prediction Interval Estimate for YX=Xi Microsoft Excel, 4e © 2004 Chap 12-71 Prentice-Hall, Inc.
72.
Pitfalls of Regression
Analysis Lacking an awareness of the assumptions underlying least-squares regression Not knowing how to evaluate the assumptions Not knowing the alternatives to least-squares regression if a particular assumption is violated Using a regression model without knowledge of the subject matter Extrapolating outside the relevant range Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-72
73.
Strategies for Avoiding the
Pitfalls of Regression Start with a scatter plot of X on Y to observe possible relationship Perform residual analysis to check the assumptions Plot the residuals vs. X to check for violations of assumptions such as homoscedasticity Use a histogram, stem-and-leaf display, box-andwhisker plot, or normal probability plot of the residuals to uncover possible non-normality Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-73
74.
Strategies for Avoiding the
Pitfalls of Regression (continued) If there is violation of any assumption, use alternative methods or models If there is no evidence of assumption violation, then test for the significance of the regression coefficients and construct confidence intervals and prediction intervals Avoid making predictions or forecasts outside the relevant range Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-74
75.
Chapter Summary Introduced types
of regression models Reviewed assumptions of regression and correlation Discussed determining the simple linear regression equation Described measures of variation Discussed residual analysis Addressed measuring autocorrelation Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-75
76.
Chapter Summary (continued) Described inference
about the slope Discussed correlation -- measuring the strength of the association Addressed estimation of mean values and prediction of individual values Discussed possible pitfalls in regression and recommended strategies to avoid them Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 12-76
Notas do Editor
{}
Baixar agora