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Chapter 14
Simple Linear Regression
14 - PAGE 40
14 - PAGE 39
14 - PAGE 1
Chapter 14
Simple Linear Regression
Learning Objectives
1. Understand how regression analysis can be used to develop an equation that estimates mathematically how two variables are related.
2. Understand the differences between the regression model, the regression equation, and the estimated regression equation.
3. Know how to fit an estimated regression equation to a set of sample data based upon the least-squares method.
4. Be able to determine how good a fit is provided by the estimated regression equation and compute the sample correlation coefficient from the regression analysis output.
5. Understand the assumptions necessary for statistical inference and be able to test for a significant relationship.
6. Learn how to use a residual plot to make a judgement as to the validity of the regression assumptions, recognize outliers, and identify influential observations.
7. Know how to develop confidence interval estimates of y given a specific value of x in both the case of a mean value of y and an individual value of y.
8. Be able to compute the sample correlation coefficient from the regression analysis output.
9. Know the definition of the following terms:
independent and dependent variable
simple linear regression
regression model
regression equation and estimated regression equation
scatter diagram
coefficient of determination
standard error of the estimate
confidence interval
prediction interval
residual plot
standardized residual plot
outlier
influential observation
leverage
Solutions:
1 a.
b. There appears to be a linear relationship between x and y.
c. Many different straight lines can be drawn to provide a linear approximation of the relationship between x and y; in part d we will determine the equation of a straight line that “best” represents the relationship according to the least squares criterion.
d. Summations needed to compute the s
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