Regression
Regression analysis is a statistical technique for estimating the relationships among variables. It includes
many techniques for modeling and analyzing several variables, when the focus is on the relationship
between a dependent variable and one or more independent variables.
y = intercept + (slope x) + error
y = constant + (coefficient x) + error
y = a + bx + e
Regression Equation
Suppose we have a sample of size ‘n’ and it has two sets of measures, denoted by x
and y. We can predict the values of ‘y’ given the values of ‘x’ by using the equation,
called the REGRESSION EQUATION. Regression equation of Y on X is expressed as
follows:
Y = a + bX
Regression equation of X on Y is expressed as follows:
X= a+bY
where the coefficients a and b are given by
b=
∑ XY −n X y
∑ x 2−n X 2
x and y are the variables.
b = The slope of the regression line
a = The intercept point of the regression line and the y axis.
N = Number of values or elements
X = First Score
Y = Second Score
ΣXY = Sum of the product of first and Second Scores
ΣX = Sum of First Scores
ΣY = Sum of Second Scores
ΣX2 = Sum of square First Scores
a=Y -bX
Assumptions:
The regression model is based on the following assumptions.
The relationship between X and Y is linear.
The expected value of the error term is zero
The variance of the error term is constant for all the values of the
independent variable, X.
The independent variable is uncorrelated with the error term.
The error term is normally distributed.
Uses of Regression Analysis:
Three uses for regression analysis are for
1. prediction
2. model specification and
3. parameter estimation.