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Chapter 17 – Simple Linear Regression and Correlation

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1 Chapter 17 – Simple Linear Regression and Correlation
Statistics for Management and Economics-Sixth Edition Gerald Keller – Brian Warrack Chapter 17 – Simple Linear Regression and Correlation

2 Figure 17. 1 Scatter diagram with regression line for Example 17.1
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Scatter diagram with regression line for Example 17.1

3 Figure 17.2 Calculation of residuals in Example 17.1
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Calculation of residuals in Example 17.1

4 Applet 18.1 Fitting the Regression Line
© 2003 Brooks/Cole Publishing / Thomson Learning Applet Fitting the Regression Line

5 Excel – Summary Output – Regression Statistics from Example 17.2
© 2003 Brooks/Cole Publishing / Thomson Learning Excel – Summary Output – Regression Statistics from Example 17.2

6 Minitab – Regression Analysis: Price versus Odometer from Example 17.2
© 2003 Brooks/Cole Publishing / Thomson Learning Minitab – Regression Analysis: Price versus Odometer from Example 17.2

7 Figure 17.3 Distribution of y given x
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Distribution of y given x

8 Figure 17.4 Bivariate normal distribution
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Bivariate normal distribution

9 Figure 17.5 Scatter diagram of entire population with β1 = 0
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Scatter diagram of entire population with β1 = 0

10 © 2003 Brooks/Cole Publishing / Thomson Learning
Excel (See page 612 from Example 17.2) and this also includes Example 17.4

11 © 2003 Brooks/Cole Publishing / Thomson Learning
Minitab – (See Page 612 from Example 17.2) This also includes Example 17.4

12 Figure 17.6 Partitioning the deviation for i=5 in Example 17.1
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Partitioning the deviation for i=5 in Example 17.1

13 Applet 19.1 Analysis of Regression Deviations
© 2003 Brooks/Cole Publishing / Thomson Learning Applet 19.1 Analysis of Regression Deviations

14 Excel- Summary Output Regression Statistics from Example 17.6
© 2003 Brooks/Cole Publishing / Thomson Learning Excel- Summary Output Regression Statistics from Example 17.6

15 Minitab-Regression Analysis: Nortel versus TSE from Example 17.6
© 2003 Brooks/Cole Publishing / Thomson Learning Minitab-Regression Analysis: Nortel versus TSE from Example 17.6

16 Excel – Prediction Interval from Example 17.7
© 2003 Brooks/Cole Publishing / Thomson Learning Excel – Prediction Interval from Example 17.7

17 Minitab – Predicted Values for New Observations from Example 17.7
© 2003 Brooks/Cole Publishing / Thomson Learning Minitab – Predicted Values for New Observations from Example 17.7

18 Figure 17.77 Interval estimates and prediction intervals.
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Interval estimates and prediction intervals.

19 Excel – Foreign Index Funds: Solution
© 2003 Brooks/Cole Publishing / Thomson Learning Excel – Foreign Index Funds: Solution

20 Minitab – Correlations: US Index, Japanese Index
© 2003 Brooks/Cole Publishing / Thomson Learning Minitab – Correlations: US Index, Japanese Index

21 Excel – Spearman Rank Correlation from Example 17.8
© 2003 Brooks/Cole Publishing / Thomson Learning Excel – Spearman Rank Correlation from Example 17.8

22 Minitab – Correlations: Rank apt, Rank Per from Example 17.8
© 2003 Brooks/Cole Publishing / Thomson Learning Minitab – Correlations: Rank apt, Rank Per from Example 17.8

23 Excel – Residual Output from 17.9 Regression Diagnostics – 1
© 2003 Brooks/Cole Publishing / Thomson Learning Excel – Residual Output from 17.9 Regression Diagnostics – 1

24 Minitab – From 17.9 Regression Diagnostics -1
© 2003 Brooks/Cole Publishing / Thomson Learning Minitab – From 17.9 Regression Diagnostics -1

25 Excel histogram of residuals for Example 17.2
© 2003 Brooks/Cole Publishing / Thomson Learning Excel histogram of residuals for Example 17.2

26 Figure 17.8 Plot of residuals depicting heteroscedasticity
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Plot of residuals depicting heteroscedasticity

27 Figure 17.9 Plot of residuals depicting homoscedasticity
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Plot of residuals depicting homoscedasticity

28 Excel plot of predicted values versus residuals for Example 17.2
© 2003 Brooks/Cole Publishing / Thomson Learning Excel plot of predicted values versus residuals for Example 17.2

29 © 2003 Brooks/Cole Publishing / Thomson Learning
Figure Plot of residuals versus time indicating autocorrelation (alternating)

30 © 2003 Brooks/Cole Publishing / Thomson Learning
Figure Plot of residuals versus time indicating autocorrelation (increasing)

31 Figure 17.12 Plot of residuals versus time indicating independence
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Plot of residuals versus time indicating independence

32 Figure 17.13 Scatter diagram with one outlier
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Scatter diagram with one outlier

33 Figure 17.15 Scatter diagram without the influential observation
© 2003 Brooks/Cole Publishing / Thomson Learning Figure Scatter diagram without the influential observation


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