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Regression Analysis

Regression Analysis. Heibatollah Baghi, and Mastee Badii. Purpose of Regression Analysis.

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Regression Analysis

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  1. Regression Analysis Heibatollah Baghi, and Mastee Badii

  2. Purpose of Regression Analysis Regression analysis procedures have as their primary purpose the development of an equation that can be used for predicting values on some Dependent Variable, Y, given Independent Variables, X, for all members of a population.

  3. Purpose of Linear Relationship • One of the most important functions of science is the description of natural phenomenon in terms of ‘functional relationships’ between variables. • When it was found that the value of a variable Y depends on the value of another variable X so that for every value of X there is a corresponding value of Y, then Y is said to be a ‘function’ of’ X.

  4. Example of Linear Relationship • If one is given a temperature value in the Centigrade Scale ( represented by X), then the corresponding value in the Fahrenheit Scale ( represented by Y), can be calculated by the formula: • Y = 32 + 1.8 X • If the Centigrade temperature is 10, the Fahrenheit temperature is calculated to be: • Y = 32 + 1.8 (10) = 32 + 18 = 50 • Similarly, if the Centigrade temperature is 20, the Fahrenheit temperature must be: • Y = 32 + 1.8 (20) = 32 + 36 = 68 • We can plot this relationship on the usual rectangular system of coordinates.

  5. Dependent variable Independent variable Slope of line Y Intercept Linear Equation • Any equation of the following form will generate a straight line • Y = a + b X • A straight line is defined by two terms: Slope and Intercept. The slope (b) reflects the angle and direction of regression line. • The intercept (a) is the point at which regression line intersects the Y axis.

  6. Regression and Prediction • As a university admissions officer, what GPA would you predict for a student who earns a score of 650 on SAT-V ? • If the relationship between X and Y is not perfect, you should attach error to your prediction. • Correlation and Regression • Determining the Line of Best Fit or Regression Line using Least Squares Criterion.

  7. Selection of Regression Line • Residual or error of prediction = (Y –Y’) • Positive or negative • Regression line, Y’ = a + bX, is chosen so that the sum of the squared prediction error for all cases, ∑(Y- Y’)2, is as small as possible

  8. Calculation of Regression Line Calculate sum

  9. Continued Calculation of Regression Line Calculate deviation from average Y

  10. Continued Calculation of Regression Line Calculate deviation from average X

  11. Continued Calculation of Regression Line Calculate product of deviation from X and Y

  12. Continued Calculation of Regression Line

  13. Standard Deviation of Y Standard Deviation of X Correlation of X & Y Continued Calculation of Regression Line

  14. Continued Calculation of Regression Line

  15. Continued Calculation of Regression Line a = 1.42 b = .0021 Y’ = 1.42 + .0021 X

  16. Calculation of Predicted Values and Residuals Y’ = 1.42 + .0021 X

  17. Plot of Data

  18. Regression line shows predicted values. Differencebetween predicted & observed is the residual Plot of Data Slope showschange in Y associated to to change in one unit of X Intercept

  19. Calculation of Regression Line Using Standard Deviations Predicted weight = 811 + 9 Gestation days

  20. Relationship between Weight & Gestation Days Regression equation: Y` = 811 + 9 X Intercept Predicted weight = 811 + 9 Gestation days

  21. Predicting Weight from Gestation Days

  22. Sources of Variation • The sum of Squares of the Dependent Variable is partitioned into two components: • One due to Regression (Explained) • One due to Residual (Unexplained)

  23. Partitioning of Sum of Squares

  24. Testing Statistical Significance of Variance Explained

  25. Continued Testing Statistical Significance of Variance Explained

  26. Continued Testing Statistical Significance • Testing the proportion of variance due to regression • H0 : R2 = 0 Since the F< Fα fail to reject Ho • Ha : R2≠ 0

  27. Testing Statistical Significance of Regression Coefficient B. Testing the Regression Coefficient H0 : β = 0 Since the p> αFail to reject Ho Ha : β≠ 0

  28. Standard Error of Estimate of Y Regressed on X

  29. Interpretation of Standard Error of Estimate • The average amount of error in predicting GPA scores is 0.49. • The smaller the standard error of estimate, the more accurate the predictions are likely to be.

  30. Assumptions • X and Y are normally distributed

  31. Continued Assumptions • X and Y are normally distributed • The relationship between X and Y is linear and not curved

  32. Continued Assumptions • X and Y are normally distributed • The relationship between X and Y is linear and not curved • The variation of Y at particular values of X is not proportional to X

  33. Continued Assumptions • X and Y are normally distributed • The relationship between X and Y is linear and curved • The variation of Y at particular values of X is not proportional to X • There is negligible error in measurement of X

  34. The Use of Simple Regression • Answering Research Questions and Testing Hypothesis • Making Prediction about Some Outcome or Dependent Variable • Assessing an Instrument Reliability • Assessing an Instrument Validity

  35. Take Home Lesson How to conduct Regression Analysis

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