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Graphical depiction of a regression line

Developing and Using a Simple Regression Equation. The simple regression model is based on the equation for a straight line: Yc = A+BX. Yc = A+BX where: Yc = the calculated or estimated value for the dependent variable A= the Y intercept B= the slope of the line X = independent variable.

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Graphical depiction of a regression line

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  1. Developing and Using a Simple Regression Equation.The simple regression model is based on the equation for a straight line:Yc = A+BX

  2. Yc = A+BXwhere:Yc = the calculated or estimated value for the dependent variableA= the Y interceptB= the slope of the lineX = independent variable

  3. Graphical depiction of a regression line Y Yc = A + BX slope intercept X 0

  4. How can we estimate next year’s yield?

  5. How can we estimate next year’s yield? Take the average?

  6. What might trend represent?

  7. What might trend represent?Technology – innovation – hybrid development

  8. We want to find the line of best fit.An average just won’t cut it.

  9. Graphical depiction of a regression line Y * * * * * * X 0

  10. Step 1: Collect the historical data.Every Y observation must have an X.

  11. Step 2: Put the data in a tabular form. X Y

  12. Step 3:Calculate the Means of X and Y

  13. X =  X ----- n Y =  Y ----- n

  14. Step 4. Compute the slope (B) and Y intercept (A) B =  XY – n X Y ------------------  X2 – n X2

  15. A = Y - BX

  16. B = 1823124 – (7*1997*130.414)______________________27916091 – (7*1997*1997)B = (67/28) = 2.3929

  17. A = 130.414 – (2.3929 * 1997)A = 130.414 – 4778.62A = - 4648.20

  18. Y 2001 = -4648.20 +(2.3929*2001)Y2001 = 139.99

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