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Regression Analysis..

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1877 while studying the relationship between the height

of fathers and sons.

In general terms, regression is concerned with

describing and evaluating the relationship between a

given variable and one or more other variables.

More specifically, it is an attempt to explain movement

in a variable by reference to movements in one or more

variables.

The statistical technique that express the relationship

between two or more variables in the form of an

equation to estimate the value of a variable, based on

the given value of another variable is called regression

analysis

The variable whose value is to be estimated is called

dependent ( or response) variable and the variable

whose value is used to estimate this is called

independent ( regressor or predictor) variable.

The linear algebraic equation used for expressing a

dependent variable in terms of independent variable is

called linear regression equation.

Regression Coefficients

To estimate values of population parameter under

certain assumptions, the fitted regression equation

representing the straight line regression model is

written as

Regression equation Y on X: Y= a + bX

Methods to determine Regression Coefficients

Least Squares Normal Equations

Normal equations with respect to the regression

equation Y on X:

Yc a bX

The values of constants a and b are determined by solving the following normal equations

Y N a b X

XY a X b X 2

Regression equation Y on X:

y

Y Y r

X X

x

x

X X r

Y Y

Example

Advertisement Expd. (X)Rs

Sales (Y)Rs

78

125

89

137

97

156

69

112

59

107

79

136

68

124

61

108

X=600

Y=1005

XY

X2

Y2

Yc

(Y- Yc)2

9750

6084

15625

129.276

18.29

12193

7921

18769

142.608

31.45

15132

9409

24336

152.304

13.66

7728

4761

12544

118.368

40.55

6313

3481

11449

106.248

0.566

10744

6241

18496

130.488

30.38

8432

4624

15376

117.156

46.84

6588

3721

11664

108.672

0.452

1005.12

XY=76880

X2=46242

Y2=128259

(Y- Yc)2

=182.19

Results

So the regression equation Y on X is

Y = 34.74+1.212 X

In a similar manner we can find out the

regression equation X on Y is

X = 19.26 + 0.75 Y

S.E = (Y- Yc)2 /N = 4.77

T-statistics= Coefficient of the

independent variable / S.E

Estimate

A measure of the precision of the

estimates so obtained from the regression

equations is provided by the Standard

error (S.E.) of the estimate gives us a

measure of the scatter of the observations

about the line of regression.

S yx

Y Y

c

Example

Advertisement Expd. (X)Rs

Sales (Y)Rs

10

14

12

17

15

23

23

25

20

21

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