张俊妮《概率统计》北大光华-lecture25.pptVIP

Question How well does the estimated regression equation fit the data? Total Sum of Squares The sum of squared deviations obtained by using the sample mean to estimate the value of quarterly sales for each restaurant in the sample. Total sum of squares: Sum of Squares Due to Error Let denote the estimated value of the dependent variable using the linear regression model. is called the i th residual (残差). Sum of squares due to error: Sum of Squares Due to Regression Measures how much the values on the estimated regression line deviate from . Note that the mean of is also . Sum of squares due to regression: * * * Multiple Linear Regression Lecture 25 La Quinta Motor Inns is planning an expansion. Management wishes to predict which sites are likely to be profitable. Several areas where predictors of profitability can be identified are: Competition Market awareness Customers Community Physical quality Example: Where to locate a new motor inn? Profitability Competition Market awareness Customers Community Physical Margin Rooms Nearest Office space College enrollment Income Disttwn Distance to downtown (miles) Median household Income ($1000) Distance to the nearest competitor (miles) Number of hotels/motels rooms within 3 miles from the site (rooms) Number of college students around the site (1000) (1000 sq-ft) (%) Data was collected from randomly selected 100 inns that belong to La Quinta, and ran for the following suggested model: Margin =b0 + b1Rooms + b2Nearest + b3Office + b4College + b5Income + b6Disttwn + E.g. E.g. E.g. The term linear refers to the fact that the expectation of is a linear function of the unknown parameters Multiple Linear Regression Linearity: Normality: each variable Yi has a normal distribution. Independence: the variables Y1,…,Yn are independent. Homoscedasticity: the variables Y1,…,Yn have the s