Regression Analysis Model Building Guide
Regression Analysis Model Building Guide
SM SBE13E Chapter 16
Chapter 16
Regression Analysis: Model Building
Learning Objectives
1. Learn how the general linear model can be used to model problems involving curvilinear
relationships.
2. Understand the concept of interaction and how it can be accounted for in the general linear model.
3. Understand how an F test can be used to determine when to add or delete one or more variables.
4. Develop an appreciation for the complexities involved in solving larger regression analysis problems.
5. Understand how variable selection procedures can be used to choose a set of independent variables
for an estimated regression equation.
6. Learn how analysis of variance and experimental design problems can be analyzed using a regression
model.
7. Know how the Durbin-Watson test can be used to test for autocorrelation.
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Chapter 16
Solutions:
Analysis of Variance
Model Summary
Coefficients
Regression Equation
y = -6.8 + 1.230 x
b. Since the p-value corresponding to F = 6.85 is .059 > the relationship is not significant.
c.
45
40
35
30
y
25
20
15
10
20 25 30 35 40 45
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
e. Since the p-value corresponding to F = 25.68 is .013 < the relationship is significant.
Analysis of Variance
Model Summary
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Chapter 16
Coefficients
Regression Equation
y = 9.32 + 0.424 x
The high p-value (.117) indicates a weak relationship; note that 61.4% of the variability in y has
been explained by x.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
At the .05 level of significance, the relationship is significant; the fit is excellent.
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
y = 2.32 + 0.637 x
c. The following standardized residual plot indicates that the constant variance assumption is
not satisfied.
2.0
1.5
St andardized Residual
1.0
0.5
0.0
-0.5
-1.0
-1.5
3 4 5 6 7 8
Fit t ed Value
d. The logarithmic transformation does not appear to eliminate the wedged-shaped pattern in the above
residual plot. The reciprocal transformation does, however, remove the wedge-shaped pattern.
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Chapter 16
Neither transformation provides a good fit. The Minitab output for the reciprocal transformation and
the corresponding standardized residual plot are shown below.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
2.0
1.5
St andardized Residual
1.0
0.5
0.0
-0.5
-1.0
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
Analysis of Variance
Model Summary
Coefficients
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Chapter 16
Regression Equation
Regression Equation
Variable Setting
Vehicle Speed 38
Vehicle Speed SQ 1444
Analysis of Variance
The fitted value is 1302.01, with a standard deviation of 9.9284. The 95% confidence interval is
1270.41 to 1333.61; the 95% prediction interval is 1242.55 to 1361.47.
1.8
1.6
1.4
1.2
Distance
0.8
0.6
0.4
0.2
0
5 10 15 20 25 30 35
Number
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1
yˆ 0.0468 14.4 Ra2 .91
x
7. a.
1200
1000
800
Mortgage ($)
600
400
200
0
700 750 800 850 900 950 1000 1050 1100
Ren ($)
The scatter diagram suggests that there is a curvilinear relationship, so a simple linear regression
model may not be appropriate.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
16 - 9
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Chapter 16
Mortgage
Obs ($) Fit Resid Std Resid
1 539.0 700.8 -161.8 -2.17 R
R Large residual
Versus Fits
(response is Mortgage ($))
1.0
0.5
St andardized Residual
0.0
-0.5
-1.0
-1.5
-2.0
-2.5
600 700 800 900 1000
Fit t ed Value
The standardized residual plot suggests that a curvilinear regression model will be more appropriate
than a simple linear regression model.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
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Mortgage
Obs ($) Fit Resid Std Resid
1 539.0 646.8 -107.8 -2.23 R
R Large residual
4500
4000
3500
3000
2500
Price
2000
1500
1000
500
0
12 14 16 18 20
Rating
A simple linear regression model does not appear to be appropriate. There appears to be a curvilinear
relationship between the two variables.
Analysis of Variance
Model Summary
16 - 11
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Chapter 16
Coefficients
Regression Equation
Price
Obs ($1000) Fit Resid Std Resid
2 4000 2420 1580 2.76 R
15 70 361 -291 -0.82 X
R Large residual
X Unusual X
c. The Minitab output for the model using the base 10 log of Price as the dependent variable follows:
Analysis of Variance
Model Summary
Coefficients
Regression Equation
9. a.
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b.
Note the line drawn through the data. This line indicates a possible curvilinar relationship between
these two variables.
c. In the Minitab output that follows IndexSq denotes the square of the Cost-of-Living Index.
Analysis of Variance
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Chapter 16
Coefficients
Regression Equation
Creative
Obs Class (%) Fit Resid Std Resid
20 20.60 31.08 -10.48 -3.94 R
21 44.40 45.16 -0.76 -0.35 X
37 24.20 30.68 -6.48 -2.48 R
39 38.80 41.66 -2.86 -1.38 X
40 41.60 36.19 5.41 2.09 R
43 43.70 41.61 2.09 0.90 X
R Large residual
X Unusual X
At the .05 level of significance there is overall significance. And, each of the three independent
variables (Cost-of-Living Index, IndexSq, and Income) is significant.
The primary concern of using this estimate is that the estimated regression equation was developed
for metropolitan areas with a population of 1,000,000 or more. But, the population for Tucson is so
close to 1,000,000 that the estimated regression equation should still provide a good estimate. Note
to Instructor: the actual value of the percentage of the workforce in creative fields for Tucson
reported by Kiplinger was 31.1%.
(520 100) / 2
b. F 48.3
100 / 23
Using Excel or Minitab, the p-value corresponding to F = 48.3 is .000.
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F = 440/1.8 = 244.44
(100 45) / 2
d. F 15.28
1.8
Using Excel or Minitab, the p-value corresponding to F = 15.28 is .000.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
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Chapter 16
Analysis of Variance
Model Summary
Coefficients
Regression Equation
Scoring Ave. = 57.16 + 1.0319 Putting Ave. - 23.102 Greens in Reg. - 0.022
Drive Accuracy
c. SSE(reduced) =166.95
SSE(full) = 15.521
MSE(full) = .119
The p-value associated with F = 634.19 (2 degrees of freedom numerator and 130 denominator) is
0.00. With a p-value < α =.05, the addition of the two independent variables is statistically
significant.
Analysis of Variance
Model Summary
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Regression Equation
Analysis of Variance
Model Summary
Coefficients
Regression Equation
c. SSE(reduced) =1.66934E+12
SSE(full) = 8.13554E+11
MSE(full) = 6258106800
The p-value associated with F = 68.37 (2 degrees of freedom numerator and 130 denominator) is
less than .001. With a p-value < α =.05, the addition of the two independent variables is statistically
significant.
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Chapter 16
Analysis of Variance
Model Summary
Coefficients
Regression Equation
Because the equation developed in part (d) provides a better fit and is a simpler model, it is preferred
over the equation developed in part (b).
Analysis of Variance
Model Summary
Coefficients
Regression Equation
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R Large residual
Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
The p-value associated with F = 4.23 (2 numerator and 15 denominator DF) is .000
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Chapter 16
Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
X Unusual X
Analysis of Variance
Model Summary
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Coefficients
Regression Equation
R Large residual
c. SSE(reduced) = 10.4512
SSE(full) = 3.7419
MSE(full) = .0813
The p-value associated with F = 41.26 (2 degrees of freedom numerator and 46 denominator) is
.000. With a p-value < α =.05, the addition of the two independent variables is statistically
significant.
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Chapter 16
The independent variable most highly correlated with Weeks is Age. The Minitab output
corresponding to using Age as the independent variable follows:
Analysis of Variance
Model Summary
Coefficients
Regression Equation
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R Large residual
X Unusual X
The results suggest a model using four independent variables: Age, Manager, Head, and Sales. The
corresponding Minitab output follows:
Analysis of Variance
Model Summary
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Chapter 16
Coefficients
Regression Equation
Weeks = -0.07 + 1.725 Age - 15.09 Head - 28.67 Manager - 17.42 Sales
R Large residual
X Unusual X
c. The results using Minitab’s Forward Selection procedure are the same as the results using Minitab’s
Stepwise procedure in part (b).
d. The results using Minitab’s Backward Elimination procedure are shown below:
α to remove = 0.05
These results also suggest using the model with four independent variables: Age, Head, Manager, and
Sales.
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Response is Weeks
M M
a T a
r e n S
E r H n a a
A d i e u g l
R-Sq R-Sq Mallows g u e a r e e
Vars R-Sq (adj) (pred) Cp S e c d d e r s
1 33.3 32.0 28.7 22.5 19.534 X
1 15.8 14.0 10.0 40.6 21.954 X
2 39.9 37.3 33.3 17.8 18.749 X X
2 38.2 35.6 30.2 19.5 19.005 X X
3 47.6 44.2 37.8 11.8 17.686 X X X
3 46.8 43.3 38.1 12.7 17.831 X X X
4 55.4 51.4 44.9 5.9 16.507 X X X X
4 49.1 44.6 37.4 12.3 17.628 X X X X
5 58.1 53.3 46.6 5.1 16.179 X X X X X
5 56.0 51.0 43.9 7.3 16.582 X X X X X
6 58.7 53.0 46.0 6.4 16.241 X X X X X X
6 58.3 52.5 44.6 6.8 16.318 X X X X X X
7 59.1 52.3 43.8 8.0 16.350 X X X X X X X
The results suggest a model using five independent variables: Age, Married, Head, Manager, and Sales.
Analysis of Variance
Model Summary
Coefficients
16 - 25
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Chapter 16
Regression Equation
Weeks = 13.1 + 1.637 Age - 9.76 Married - 19.41 Head - 28.99 Manager -
18.97 Sales
R Large residual
17. The output obtained using Minitab’s Best Subset Regression follows:
G D
r r
e P i
e u v
n t e D
s t r
i A i
i n c v
n g c e
u G
R A r r
e v a e
R-Sq R-Sq g e c e
Vars R-Sq (adj) (pred) Mallows Cp S . . y n
1 43.4 43.0 41.7 1034.5 1.0254 X
1 31.9 31.4 29.7 1270.7 1.1246 X
2 93.7 93.6 93.3 2.2 0.34421 X X
2 60.7 60.1 58.8 681.1 0.85801 X X
3 93.7 93.5 93.1 4.2 0.34553 X X X
3 93.7 93.5 93.1 4.2 0.34553 X X X
4 93.7 93.5 92.7 5.0 0.34524 X X X X
The Best Subset Regression output indicates that several models produce R-Sq values over .90, but a
model using two independent variables, Greens in Reg. and Putting Ave., may be a good choice. The
Minitab output for this model follows:
Analysis of Variance
Model Summary
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Coefficients
Regression Equation
18. a. Because the independent variable most highly correlated with RPG is OBP, it will
provide the best one-variable estimated regression equation. The Minitab output
using OBP to predict RPG follows:
Analysis of Variance
Model Summary
Coefficients
Regression Equation
Std
Obs RPG Fit Resid Resid
15 5.150 3.198 1.952 2.13 R
R Large residual
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Chapter 16
b. The output using Minitab’s Stepwise Regression procedure using Alpha-to-Enter = 0.05 and Alpha-
to-Remove = 0.05 follows:
Candidate terms: H, 2B, 3B, HR, RBI, BB, SO, SB, CS, OBP, SLG, AVG
Analysis of Variance
Model Summary
Coefficients
Regression Equation
Std
Obs RPG Fit Resid Resid
15 5.150 4.192 0.958 2.39 R
R Large residual
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Using less sensitive values for Alpha-to-Enter and Alpha-to-Remove will provide a model with
additional independent variables. For example, the output using Minitab’s Stepwise Regression
procedure using Alpha-to-Enter = 0.10 and Alpha-to-Remove = 0.10 follows:
Candidate terms: H, 2B, 3B, HR, RBI, BB, SO, SB, CS, OBP, SLG, AVG
------Step 5------
Coef P
Constant -0.909
OBP 32.18 0.000
HR 0.1088 0.000
AVG -21.51 0.000
3B 0.2439 0.010
BB -0.02231 0.011
S 0.420960
R-sq 97.20%
R-sq(adj) 96.20%
R-sq(pred) 93.86%
Mallows’ Cp 4.46
Analysis of Variance
Model Summary
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Chapter 16
Coefficients
Regression Equation
The following output using Minitab’s Best Subset procedure also confirms that a variety of models
will provide a good fit.
Response is RPG
R O S A
R-Sq R-Sq Mallows 2 3 H B B S S C B L V
Vars R-Sq (adj) (pred) Cp S H B B R I B O B S P G G
1 81.4 80.4 75.4 66.6 0.95631 X
1 78.9 77.7 73.1 77.9 1.0192 X
2 90.8 89.7 87.4 27.0 0.69299 X X
2 88.4 87.0 83.5 37.8 0.77872 X X
3 94.4 93.4 89.2 12.8 0.55552 X X X
3 94.4 93.3 87.9 13.0 0.55820 X X X
4 95.8 94.6 89.9 8.8 0.50014 X X X X
4 95.5 94.3 90.0 10.0 0.51589 X X X X
5 97.2 96.2 93.9 4.5 0.42096 X X X X X
5 97.2 96.2 93.8 4.6 0.42336 X X X X X
6 97.6 96.6 92.6 4.5 0.40042 X X X X X X
6 97.5 96.4 94.1 5.1 0.41198 X X X X X X
7 98.2 97.2 94.4 3.9 0.36245 X X X X X X X
7 98.2 97.1 94.4 4.1 0.36664 X X X X X X X
8 98.3 97.1 93.3 5.3 0.36471 X X X X X X X X
8 98.3 97.0 93.3 5.7 0.37269 X X X X X X X X
9 98.4 97.0 92.4 7.1 0.37506 X X X X X X X X X
9 98.4 96.9 91.3 7.3 0.38077 X X X X X X X X X
10 98.4 96.7 91.8 9.0 0.39477 X X X X X X X X X X
10 98.4 96.7 88.1 9.0 0.39496 X X X X X X X X X X
11 98.4 96.3 86.0 11.0 0.41758 X X X X X X X X X X X
11 98.4 96.2 88.6 11.0 0.41848 X X X X X X X X X X X
12 98.4 95.7 83.8 13.0 0.44629 X X X X X X X X X X X X
It would be difficult to make an argument that there is one best model given these results. The five
variable model identified using Minitab’s Stepwise Regression procedure with Alpha-to-Enter =
0.10 and Alpha-to-Remove = 0.10 seems like a reasonable choice. The Minitab regression output
corresponding to this model follows:
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
1
St andardized Residual
-1
-2
1 2 3 4 5 6 7 8 9 10
Fit t ed Value
The standardized residual plot does not indicate any reason to question the usual assumptions
regarding the error term. Thus, the estimated regression equation using OBP, HR, AVG, 3B, and BB
appears to be a good choice.
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Chapter 16
19. See the solution to Exercise 14 in this chapter. The Minitab output using the best
subsets regression procedure follows:
Response is Risk
B
l
o
o
d P
_ r
P A A e
r g g s
e S e e s
s m P S S
s o r m m
A u k e o o
R-Sq R-Sq Mallows g r e s k k
Vars R-Sq (adj) (pred) Cp S e e r s e e
1 63.3 61.3 56.6 27.6 9.2430 X
1 54.8 52.3 44.5 37.7 10.262 X
2 80.6 78.4 74.3 9.0 6.9083 X X
2 79.8 77.4 72.4 10.0 7.0538 X X
3 87.9 85.6 81.4 2.4 5.6313 X X X
3 87.3 85.0 80.9 3.0 5.7566 X X X
4 88.4 85.3 80.5 3.8 5.6908 X X X X
4 87.9 84.7 78.6 4.4 5.8111 X X X X
5 88.5 84.4 76.4 5.6 5.8571 X X X X X
5 88.4 84.3 77.1 5.8 5.8876 X X X X X
6 89.1 84.0 73.6 7.0 5.9391 X X X X X X
This output suggests that the model involving Age, Blood Pressure, and Smoker is the preferred
model; the Minitab output for this model follows:
Analysis of Variance
Model Summary
Coefficients
16 - 32
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Regression Equation
R Large residual
x1 x2 x3 Treatment
0 0 0 A
1 0 0 B
0 1 0 C
0 0 1 D
E(y) = 0 + 1 x1 + 2 x2 + 3 x3
x1 x2 Treatment
0 0 1
1 0 2
0 1 3
22. Factor A
Factor B
x2 x3 Level
0 0 1
1 0 2
0 1 3
D1 D2 Mfg.
0 0 1
1 0 2
0 1 3
E(y) = 0 + 1 D1 + 2 D2
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Chapter 16
Analysis of Variance
Model Summary
Coefficients
Regression Equation
c. H 0 : 1 = 2 = 0
d. The p-value of .004 is less than = .05; therefore, we can reject H0 and conclude that the mean time
to mix a batch of material is the same for each manufacturer.
D1 D2 D3 Paint
0 0 0 1
1 0 0 2
0 1 0 3
0 0 1 4
Analysis of Variance
16 - 34
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Model Summary
Coefficients
Regression Equation
H 0 : 1 = 2 = 3 = 0
The p-value of .093 is greater than = .05; therefore, at the 5% level of significance we
cannot reject H0.
b. Note: Estimating the mean drying for paint 2 using the estimated regression equations developed in
part (a) may not be the best approach because at the 5% level of significance, we cannot reject H0.
But, if we want to use the output, we would proceed as follows.
X2 X3 Car
0 0 1
1 0 2
0 1 3
The complete data set and the Minitab output are shown below:
Analysis of Variance
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Chapter 16
Model Summary
Coefficients
Regression Equation
To test for any significant difference between the two analyzers we must test H0: 1 Since the p-
value corresponding to t = -4.54 is .045 < = .05, we reject H0: 0 the time to do a tune-up is
not the same for the two analyzers.
Advertisement
DesignB DesignC Design
0 0 A
1 0 B
0 1 C
The complete data set and the Minitab output are shown below:
16 - 36
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
Overall the model is significant because the p-value corresponding to F = 5.60 < α = .05.
Analysis of Variance
Model Summary
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Chapter 16
Coefficients
Regression Equation
R Large residual
Thus, DesignB is significant using α = .05. However, the model involving just the interaction
between Large and DesignB also provides some interesting results:
Analysis of Variance
Model Summary
Coefficients
Regression Equation
Here we see that the interaction term is significant. Thus, one might consider that the differences are
due to both design and a large advertisement. But, it is difficult to reach any definite conclusions
given the size of the data set. A larger sample size is needed to make any stronger conclusions about
the relationships among the variables.
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
Durbin-Watson Statistic
b. The Durbin-Watson statistic is .798118. At the .05 level of significance, dL = 1.20 and dU =1.41.
Because d < dL, there is significant positive autocorrelation.
28. From Minitab, d = 1.59617. At the .05 level of significance, dL = 1.04 and dU = 1.77. Since dL d
dU, the test is inconclusive.
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Chapter 16
9
8
7
6
5
Yield
4
3
2
1
0
0 5 10 15 20 25 30 35
Years to Maturity
A simple linear regression model does not appear to be appropriate; there appears to be a curvilinear
relationship.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
16 - 40
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Std
Obs Yield Fit Resid Resid
30 8.204 6.080 2.124 2.38 R
38 5.903 5.646 0.257 0.32 X
R Large residual
X Unusual X
Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
X Unusual X
With R-Sq = 66.95%, the fit provided by the logarithmic model is slightly better than the fit
provided by the second-order model with R-Sq(adj) = 64.99%. But, looking at the estimated
regression lines corresponding to both models shown on the following scatter diagrams, the
logarithmic model appears to provide a better description of the relationship between years to
maturity and yield at higher values of years to maturity. For instance, the second-order model
implies that yield is starting to move downward whereas the logarithmic model shows yields
increasing but at a much slower rate.
16 - 41
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Chapter 16
9
8
7
6
5
Yield
4
3
y = ‐0.0103x2 + 0.4606x + 1.017
2 R² = 0.6678
1
0
0 5 10 15 20 25 30 35
Years to Maturity
9
8
7
6
5
Yield
4
3
y = 1.5626ln(x) + 0.8279
2 R² = 0.6695
1
0
0 5 10 15 20 25 30 35
Years to Maturity
16 - 42
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30. a.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
16 - 43
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Chapter 16
Std
Obs Price Fit Resid Resid
2 1800 1148 652 2.81 R
R Large residual
The results obtained support the conclusion that there is a curvilinear relationship between weight
and price.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
Type of bike appears to be a significant factor in predicting price. But, the estimated regression
equation developed in part (b) appears to provide a slightly better fit.
d. A portion of the Minitab output follows. In this output WxF denotes the interaction between the
weight of the bike and the dummy variable Type_Fitness and WxC denotes the interaction between
the weight of the bike and the dummy variable Type_Comfort.
16 - 44
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May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
Std
Obs Price Fit Resid Resid
2 1800 1203 597 2.87 R
R Large residual
By taking into account the type of bike, the weight, and the interaction between these two factors,
this estimated regression equation provides an excellent fit.
16 - 45
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Chapter 16
Analysis of Variance
Model Summary
Coefficients
Regression Equation
b. The low value of the adjusted coefficient of determination (31.2%) does not indicate a good fit.
16 - 46
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100
90
80
70
Delay
60
50
40
30
0 1 2 3 4 5
Finished
The scatter diagram suggests a curvilinear relationship between these two variables.
d. The output from Minitab’s best subsets procedure follows, where FinishedSq is the square of
Finished.
Response is Delay
F
i
I F n
n Q i i
d P u n s
u u a i h
s b l s e
t l i h d
R-Sq R-Sq Mallows r i t e S
Vars R-Sq (adj) (pred) Cp S y c y d q
1 15.9 13.7 6.5 34.0 12.234 X
1 9.9 7.6 0.0 39.0 12.662 X
2 37.8 34.4 27.0 17.8 10.667 X X
2 26.9 22.9 14.9 26.9 11.561 X X
3 51.1 47.1 39.7 8.7 9.5813 X X X
3 42.2 37.3 30.4 16.1 10.425 X X X
4 59.1 54.4 48.3 4.1 8.8960 X X X X
4 51.6 46.1 35.3 10.3 9.6712 X X X X
5 59.1 53.1 43.0 6.0 9.0149 X X X X X
The estimated regression equation using Industry, Quality, Finished, and FinishedSq has an adjusted
coefficient of determination of 54.4%.
16 - 47
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Chapter 16
Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
Durbin-Watson Statistic
At the .05 level of significance, dL = 1.44 and dU = 1.54. Since d = 1.54936 > dU, there is no
significant positive autocorrelation.
16 - 48
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Analysis of Variance
Model Summary
Coefficients
Regression Equation
R Large residual
Durbin-Watson Statistic
16 - 49
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Chapter 16
b. The residual plot as a function of the order in which the data are presented follows:
30
20
Residuals 10
-10
-20
-30
4 8 12 16 20 24 28 32 36 40
Order I n Which Dat a Are Present ed
c. At the .05 level of significance, dL = 1.39 and dU = 1.60. Since dL ≤ d ≤ dU, the test is inconclusive.
D1 D2 Type
0 0 Non
1 0 Light
0 1 Heavy
Analysis of Variance
Model Summary
16 - 50
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Coefficients
Regression Equation
Since the p-value = .034 is less than = .05, there are significant differences between comfort levels
for the three types of browsers.
35. Let SizeMidsize = 1 if a midsize car, 0 otherwise; and SizeLarge = 1 if a large car, 0 otherwise.
Analysis of Variance
Model Summary
Coefficients
Regression Equation
16 - 51
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Chapter 16
R Large residual
Significant overall difference; p-value corresponding to F = 26.76 is .000 < = .05. And, the p-
values for both of the independent variables are significant as well because both p-values values are
less than = .05.
16 - 52
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