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Simple Linear Regression Model on SEI versus PRESTIGE Data

The simple linear regression model had been done on SEI versus PRESTIGE data, and it

was found that SEI is correlated linearly with PRESTIGE data. The modelling were done in Excel

program. Besides of the plotting with linear regression, this modelling also provides the statistics

from the data that supports the linear regression, such as multiple R, R squared, etc.

In analyzing the data and getting to the conclusion stated above, 904 pairs of data of SEI

and PRESTIGE were provided. From the quick-look observation, SEI values seem to increase with

the rise of PRESTIGE values. This leads to the judgment that both variables correlate positively.

Next, the data were plotted on scatter diagram, where x-axis and y-axis represented PRESTIGE

and SEI, respectively. From the plot, it can be seen that the range of PRESTIGE is from 17 to 86,

whereas the range of SEI is from 17.1 to 97.2.

From the quick analysis, it was decided that linear regression would fit the data best. By

using trendline function in Excel where statistical aspects from the data are considered, a fitting

line was constructed. This fitting line is called regression line. This regression line was used to

maximize the fitness of the data, while minimizing the error of the modelling. From this modelling,

the gradient and the y-intercept of the regression line were then calculated to find the line equation.

The line equation is y = 1.2271x – 4.3667. This agrees with the form of linear equation in the form

of y = mx + c.
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In regression modelling, finding the equation of the line is not enough. To determine the

fitness of this regression line, the multiple R and R-squared values were examined. The multiple

R value is 0.8736, while the R-squared value is 0.7631. From this assessment, it can be inferred

that the data is correlated positively, but some errors affects the data, hence its far-from-1 R-

squared value. The error or its standard deviation was calculated to be 9.3721.

To conclude the work, the PRESTIGE and SEI data correlates positively, but its R-squared

value is not so high.

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TO: Professor’s Name

FROM: Student’s Name

DATE: DD MM YYYY

SUBJECT: Regression Analysis

Linear Regression

Occupational Prestige Score is the numerical variable of interest in this short study. Socio

Economic Index of Individual is a numerical variable that represents one’s income, education

and occupation, as such it has a strong impact on the Occupational Prestige Score, hence, will be

considered the independent variable in the analysis. Linear regression is one of the simplest and

most commonly used models that show the linear relationship between the dependent and

independent variables.

Regression analysis

As mentioned above, Socio-Economic Index of Individual is the independent variable X

that is used to predict the dependent variable Y, Occupational Prestige Score. The equation of the

linear regression has the form Y = bx + a, where b is the slope of the regression line and a is the
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intercept. An analysis of the data showed that the equation for this case is y = 1.2271x - 4.3667

(Pic.1). It means that with each change of the Socio-Economic Index of Individual by 1 point,

Occupational Prestige Score will increase on 1.2271. Also, if the variable X is equal to zero, then

the variable Y will be -4.3667

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Pic.1 Scatter Plot that shows the dependence between Socio-Economic Index of

Individual and Occupational Prestige Score

Coefficients of Determination and Correlation

As shown in the Pic. 1, the coefficient of determination, R2 is equal 0.7631. It means that

76.31% of the changes in Occupational Prestige Score can be explained by the changes in Socio-

Economic Index of Individual. The numerical value of the coefficient is quite large and it means

that the linear regression model is accurate. The coefficient of correlation R is measured as a root

square of the coefficient of determination and is equal to 0.8736. This coefficient is high and it

can be said that there is a strong linear relationship between Socio-Economic Index of Individual

and Occupational Prestige Score.

In conclusion, the regression analysis showed that there is a strong positive linear

relationship between Socio-Economic Index of Individual and Occupational Prestige Score.

Therefore, the independent variable Socio-Economic Index of Individual can be used to predict

the value of the Occupational Prestige Score.