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Business 205. Review Chi-Square Preview Regression.

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Presentation on theme: "Business 205. Review Chi-Square Preview Regression."— Presentation transcript:

1 Business 205

2 Review Chi-Square

3 Preview Regression

4 Linear Equations Straight line representation of an equation General formula Y = bX + a b is a constant (slope) a is a constant (Y-intercept)

5 Regression Finding the best-fitting straight line for a set of data Regression line The resulting straight line

6 Least-Squares Solution Best-fitting regression line will have the least squared error Best fitting line for the scatterplot data

7 Least-Squares Solution

8 Regression Equation Example You have the following data points in X and Y (X, Y) format and want to know the best fitting line for your data. Find the mean for each set of scores: M x = 5 M y = 6 XY 711 43 65 34 57

9 Regression Equation Example XYX - M x Y - M Y (X - M x )(Y - M Y )(X - M x ) 2 7117 – 5 = 211 – 6 = 52*5 = 10 (2) 2 = 4 434 – 5 = -13 – 6 = -3-1*-3 = 3 (-1) 2 = 1 656 – 5 = 15 – 6 = -11*-1 = -1 (1) 2 = 1 343 – 5 = -24 – 6 = -2-2*-2 = 4 (-2) 2 = 4 575 – 5 = 07 – 6 = 10*1 = 0 (0) 2 = 0 Sum of Product = 16 SS x = 10

10 Regression Equation Example

11 Plotting the Regression Line XY 711 43 65 34 57

12 Excel Regression Linest(y values, x values) Highlight 2 cells Type in the equation Ctrl+Shift+Enter 2 numbers appear Slope, y-intercept Intercept(y values, x values) Slope(y values, x values)


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