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    9.1 Simple Linear Regression Analysis

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    Bekele Gebreamanule
    Simple linear regression analyzes the relationship between two continuous variables, where one variable is considered the independent or predictor variable (X) and the other is the dependent or response variable (Y). The regression line that best fits the data is the line for which the sum of the squared residuals is minimized. The correlation coefficient measures the strength and direction of the linear relationship between the two variables.

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    9.1 Simple Linear Regression Analysis

    Uploaded by

    Bekele Gebreamanule
    17 views8 pages
    Simple linear regression analyzes the relationship between two continuous variables, where one variable is considered the independent or predictor variable (X) and the other is the dependent or response variable (Y). The regression line that best fits the data is the line for which the sum of the squared residuals is minimized. The correlation coefficient measures the strength and direction of the linear relationship between the two variables.

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    Simple linear regression analyzes the relationship between two continuous variables, where one variable is considered the independent or predictor variable (X) and the other is the dependent or response variable (Y). The regression line that best fits the data is the line for which the sum of the squared residuals is minimized. The correlation coefficient measures the strength and direction of the linear relationship between the two variables.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    17 views8 pages

    9.1 Simple Linear Regression Analysis

    Uploaded by

    Bekele Gebreamanule
    Simple linear regression analyzes the relationship between two continuous variables, where one variable is considered the independent or predictor variable (X) and the other is the dependent or response variable (Y). The regression line that best fits the data is the line for which the sum of the squared residuals is minimized. The correlation coefficient measures the strength and direction of the linear relationship between the two variables.

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    9.

    1 Simple Linear Regression Analysis


    Regression is concerned with bringing out the nature
    of relationship and using it to know the best
    approximate value of one variable corresponding to a
    known value of other variable.
    Simple linear regression deals with method of fitting a
    straight line (regression line) on a sample of data of
    two variables in terms of equation so that if the value
    of one variable is given we can predict the value of the
    other variable.
    In other words if we have two variables under study
    one may represent the cause and the other may
    represent the effect. The variable representing the
    cause is known as independent (predictor or
    repressor) variable and it is usually denoted by X. The
    variable representing the effect is known as
    dependent (predicted) variable and is usually denoted
    by Y.
    The simple linear regression of Y on X in the
    population is given by:
      Y =  + X + ε
    Where,  = y-intercept
     = slope of the line or regression coefficient
    ε=is the error term
    The y-intercept  and the regression coefficient  are
    the population parameters. We obtain the estimates
    of  and  from the sample. The estimators of  and 
    are denoted by a and b, respectively. The fitted
    regression line is thus,
      Ye = a + b X
     The difference between the observed and the expected
    values Y-Ye, is known as error or residual, and is denoted
    by e.
     A best fitting line is one for which the sum of squares of
    the residuals,∑e2 , is minimum. For this purpose the
    principle called the method of least squares is used.
     According to the principle of least squares, one would
    select a and b such that
    ∑e2 = (Y- Ye) ² is minimum
     To minimize this function, first we take the partial
    derivatives of ∑e2 with respect to a and b.
     Regression analysis is useful in predicting the value of one
    variable from the given values of another variable.
    The measure of the degree of relationship between
    two continuous variables is known as correlation
    coefficient.

    The population correlation coefficient is represented


    by  and its estimator by r.

    r is given as the ratio of the covariance of the variables


    x and y to the product of the standard deviations of x
    and y. Symbolically,
    The correlation coefficient is always between –1 and +1,
    i.e. -1<=r<=1
    Interpretation
    r = +1 indicates a perfect positive linear relationship
    between X and Y.
    r = -1 indicates a perfect negative linear relationship
    between X and Y.
    r = 0 implies there is no linear relationship between
    the two variables X and Y.
    as r approaches -1 indicates strong relationship
    (positive or negative ) between the two variables
    as r approaches 0 indicates weak relationship
    (positive or negative) b/n the two variables
    Trace metals in drinking water affect the flavor of the
    water, and unusually high concentration can pose a
    health hazard. The following table shows trace-metal
    concentrations (zinc, in mg/L) for both surface water
    and bottom water at six different river locations. Our
    aim is to see if surface water concentration (x) is
    predictive of bottom water concentration (y).

    Location 1 2 3 4 5 6

    Bottom 0.43 0.27 0.58 0.53 0.71 0.72

    Surface 0.42 0.24 0.39 0.41 0.61 0.61


    a) Estimate the regression parameters, fit the
    regression line and interpret the coefficients.

    b) Estimate the bottom water concentration for


    location with a surface water concentration of
    0.5 mg/L.
    c) Calculate the correlation coefficient and
    coefficient of determination and provide your
    interpretation.

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