Objective: To study the effect of explanatory variables on the explained variable with the help of linear

regression model & to analyze the effects of the explanatory variables.

Theory: In regression analysis, the key idea behind is the statistical dependence of one variable, the
independent variable, on one or more other variables, explanatory variables. The two variable regression
functions is given by-

Y= β0+ β1Xi+ui

Where, Y is called as the dependent variable

Xi is called as the independent variable
Ui is called as the random variable or stochastic variable

Project: In our project, we try to analyze the Mileage (MPG), in miles per gallon, of passenger cars upon its
various components-

i) Top Speed (SP), in miles per hour

ii) Horse Power (HP)
iii) Cubic feet of cab space or Volume of the engine (VOL)
iv) Weight of the vehicle (WT), in hundreds of pound

We develop the regression equation as

Y= β0+ β1Xi+β2X2+β3X3+β4X4+ui

Where,
Y=Mileage of the car, in miles per gallon (MPG)
Xi =Top Speed of the vehicle (SP)
X2=Horse Power of the engine (HP)
X3=Cubic feet of engine cab space (VOL)
X4=Weight of the vehicle (WT), in hundreds of pound
ui =Other factors effecting Mileage
 Data:

Sl No. MPG SP HP VOL WT

1 65.4 96 49 89 17.5
2 56 97 55 92 20
3 55.9 97 55 92 20
4 49 105 70 92 20
5 46.5 96 53 92 20
6 46.2 105 70 89 20
7 45.4 97 55 92 20
8 59.2 98 62 50 22.5
9 53.3 98 62 50 22.5
10 43.4 107 80 94 22.5
11 41.1 103 73 89 22.5
12 40.9 113 92 50 22.5
13 40.9 113 92 99 22.5
14 40.4 103 73 89 22.5
15 39.6 100 66 89 22.5
16 39.3 103 73 89 22.5
17 38.9 106 78 91 22.5
18 38.8 113 92 50 22.5
19 38.2 106 78 91 22.5
20 42.2 109 90 103 25
21 40.9 110 92 99 25
22 40.7 101 74 107 25
23 40 111 95 101 25
24 39.3 105 81 96 25
25 38.8 111 95 89 25
26 38.4 110 92 50 25
27 38.4 110 92 117 25
28 38.4 110 92 99 25
29 46.9 90 52 104 27.5
30 36.3 112 103 107 27.5
Note: 31 36.1 103 84 114 27.5
V0L= cubic feet of
32 cab space
36.1 103 84 101 27.5
HP= engine horse33 power35.4 111 102 97 27.5
MPG= average miles
34 per gallon
35.3 111 102 113 27.5
SP= top speed,35 miles per hour
35.1 102 81 101 27.5
WT= vehicle weight,
36 hundreds
35.1 of pound
106 90 98 27.5
37 35 106 90 88 27.5
38 33.2 109 102 86 30
39 32.9 109 102 86 30
40 32.3 120 130 92 30
41 32.2 106 95 113 30
42 32.2 106 95 106 30
43 32.2 109 102 92 30
44 32.2 106 95 88 30
45 31.5 105 93 102 30
Regression statistics in SPSS sheet:

Variables Entered/Removed
Model Variables Entered Variables Removed Method

1 WT, VOL, SP, HP . Enter

a All requested variables entered.

b Dependent Variable: MPG

Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate

1 .909 .827 .817 4.28

a Predictors: (Constant), WT, VOL, SP, HP

b Dependent Variable: MPG

ANOVA
Model Sum of Df Mean F Sig.
Squares Square

1 Regression 6106.493 4 1526.623 83.409 .000

Residual 1281.193 70 18.303

Total 7387.687 74

a Predictors: (Constant), WT, VOL, SP, HP

b Dependent Variable: MPG
Coefficients
Unstandardize Standardized t Sig.
d Coefficients Coefficients

Model B Std. Error Beta

1 (Constant) 70.222 4.760 14.751 .000
SP -1.452E-02 .040 -.025 -.360 .720
HP -3.031E-02 .023 -.160 -1.347 .182
VOL -3.154E-02 .028 -.067 -1.117 .268
WT -.909 .138 -.733 -6.607 .000
a Dependent Variable: MPG

Residuals Statistics
Minimum Maximum Mean Std. Deviation N

Predicted Value 7.80 48.62 34.67 9.08 75

Residual -4.96 16.78 9.71E-15 4.16 75

Std. Predicted -2.958 1.537 .000 1.000 75
Value

Std. Residual -1.159 3.921 .000 .973 75

a Dependent Variable: MPG

Charts:
Prediction:

i) From the SPSS output we found R2, the fitness of good, to be 0.827. This signifies that the
sample regression line fits the model very well.

ii) The value of F is found to be 83.409 & sig is equal .000. It means that the mode is highly
significant.

iii) The significance value are found to be .000, .720, .182, .268, .000 for const, SP, HP, VOL & WT
respectively. It means that Constant, HP & VOL values are significant.

Summary: From the entire regression analysis we have seen that the out of four explanatory variables, three
variables are showing negative but significant value, So the Mileage of vehicles are negatively related to SP, HP & VOL.,
but positively related to WT of the vehicle We can conclude that the model is comparatively a good model.
A PROJECT ON REGRESSION ANALYSIS

By Jankim Hazarika

MBE 2nd semester

Roll no. 04