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Chapter 7 Some Regression Pitfalls.

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Presentation on theme: "Chapter 7 Some Regression Pitfalls."— Presentation transcript:

1 Chapter 7 Some Regression Pitfalls

2 Section 7.1 Introduction

3 Section 7.2 Observational Data versus Designed Experiments

4 Section 7.3 Parameter Estimability and Interpretation

5 Figure 7.1 Creativity and flexibility data for three children
Copyright © 2012 Pearson Education, Inc. All rights reserved.

6 Figure 7.2 Only two different x-values observed - the second-order model is not estimable
Copyright © 2012 Pearson Education, Inc. All rights reserved.

7 Copyright © 2012 Pearson Education, Inc. All rights reserved.

8 Copyright © 2012 Pearson Education, Inc. All rights reserved.

9 Figure 7.3 SAS output for interaction model, Example 7.3
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10 Figure 7.4 SPSS regression printout for grandfather clock model
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11 Section 7.4 Multi-collinearity

12 Copyright © 2012 Pearson Education, Inc. All rights reserved.

13 Copyright © 2012 Pearson Education, Inc. All rights reserved.

14 Figure 7.5 SAS regression printout for FTC model
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15 Figure 7.6 SAS correlation matrix for independent variables in FTC model
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16 Section 7.5 Extrapolation: Predicting Outside the Experimental Region

17 Figure 7.7 Using a regression model outside the experimental region
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18 Figure 7.8 Experimental region for modeling GDP (y) as a function of inflation rate (x1) and prime interest rate (x2) Copyright © 2012 Pearson Education, Inc. All rights reserved.

19 Figure 7.9 MINITAB descriptive statistics for independent variables, Example 7.6
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20 Section 7.6 Variable Transformations

21 Figure 7.10 Hypothetical relation between demand y and price p
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22 Figure 7.11a,b,c&d Graphs of some mathematical functions relating E(y) to p
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23 Figure 7.11e,f&g Graphs of some mathematical functions relating E(y) to p
Copyright © 2012 Pearson Education, Inc. All rights reserved.

24 Copyright © 2012 Pearson Education, Inc. All rights reserved.

25 Copyright © 2012 Pearson Education, Inc. All rights reserved.

26 Figure 7.12 MINITAB regression printout for Example 7.8
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27 Figure 7.13 Graph of the demand - price curve for Example 7.8
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