Table of Contents
Simple Regression & Correlation
Learning Objectives
Regression Models
Definition of Terms
Definitions ... continued
Types of Relationships
Direct vs. Inverse Relationship
Simple Regression Example
Scatter Diagram Revenues vs. Number of Customers
Linear Model Yi = ?0 + ?1X i + ?i
Possible Relationships Between X and Y in Scatter Diagrams
Simple Linear Regression Equation
Estimating the Linear Equation Using the Method of Least Squares
Method of Least Squares Graphically
Coefficient Equations
Simple Regression Example
Using the Least Squares Method
Computation of Coefficients
Solution
Using the Sample Regression Equation for Prediction
Measures of Variations in Regression: Graphical
Measures of Variations in Regression: Formula
Obtaining Measures of Variation SST, SSE, and SSR
Obtaining Measures of Variation SST, SSE, and SSR
Obtaining Measures of Variation SST, SSE, and SSR
Correlation Analysis
Coefficient of Determination (r2)
Coefficient of Determination (r2) Example
Coefficient of Correlation (r)
Various r Values
Coefficient of Correlation (r) Example
Standard Error of Estimate (sYX)
Interpreting the Standard Error of the Estimate
Standard Error of Estimate (sYX) Example
Assumptions of Linear Regression and Correlation
Residual (e) Analysis
Residual (e) Analysis
Evaluating the Assumptions
Studentized Residuals
Violations of Homoscedasticity
PPT Slide
PPT Slide
PPT Slide
Regression and Correlation Analyses: Limitations, Errors and Caveats
Conclusion
|