GROUP ACTIVITY # 1
SIMPLE LINEAR REGRESSION
SUBMITTED BY:
ALMENDRA, LANCE WENDELL Z.
AZUCENA, ANGELO LUIGI
CERNIAZ, SHANADINE
RAMIREZ, VINCE D.
REASOL, ROSE ANNE B.
SUBMITTED TO:
DR. RAMIL PEREZ
PROFESSOR
2. Agricultural Output vs. Fertilizer Use in Central Luzon
Objective: Determine how fertilizer use (in kg/hectare) affects rice yield
(tons/hectare).
Data:
Municipality Fertilizer Use Rice Field
(kg/ha) (tons/ha)
A 80 3.8
B 90 4.1
C 100 4.4
D 110 4.8
E 120 5.0
F 130 5.2
a. Computation:
Regression Equation: Ŷ = 1.52 +0.02886X
Coefficient of Determination (R2): 0.988
b. Interpretation:
Slope Interpretation: for every 1-unit increase in fertilizer use, rice output increases by about
0.02886 units (likely tons per hectare, depending on units).
Intercept Interpretation: When fertilizer use is zero, the model predicts a yield of 1.52 (though this is
theoretical and not practically used).
c. Conclusion:
There is a significant and strong positive linear relationship between fertilizer use and rice
production in Central Luzon. As fertilizer use increases, rice output also increases.
The regression model fits the data extremely well, explaining 98.8% of the variation in rice yield.
3. LGU Revenue vs. Number of Business Permits (Eastern Visayas)
Objective: Assess if the number of business permits issued can predict
local government revenue.
Data:
Municipality Business Permit Revenue
(₱ Million)
Palo 500 250
Tanauan 650 300
Abuyog 700 340
Baybay 900 410
Ormoc 1200 550
Maasin 850 380
a. Computation:
Regression Equation: Ŷ = 29.97 + 0.427x
Coefficient of Determination (R2): 0.991
b. Interpretation:
Issuing more business permits significantly contributes to LGU income.
The relationship is nearly perfectly linear based on the data.
c. Conclusion:
There is strong and statistically significant positive linear relationship between the number of
business permits and LGU revenue in Eastern Visayas.
Issuing more business permits significantly increases LGU revenue.
SUMMARY OUTPUT
Regression Statistics Rice Field (tons/ha)
Multiple R 0.993977 Residual Plot
R Square 0.98799 Rice Field (tons/ha)
5
Adjusted R Square
0.984988 Line Fit Plot
Normal Probability Plot
Residuals
Standard Error
2.292212
0 150
Observations 6 150 Fertilizer Use
Fertilizer Use
0 1 100 2 3 4 5 6
(kg/ha)
Fertilizer Use
(kg/ha)
-5 50 100
(kg/ha)
ANOVA
0Rice Field (tons/ha)
Predicted Fertilizer
df SS MS F Significance F 0 502 4 6 Use
Regression 1 1728.983 1728.983 329.0645 5.43E-05 Rice Field
0 (tons/ha) (kg/ha)
Residual 4 21.01695 5.254237 0 20 40 60 80 100
Total 5 1750 Sample Percentile
Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept -50.7797 8.638405 -5.87836 0.004185 -74.7637 -26.7956 -74.7637 -26.7956
Rice Field 34.23729(tons/ha)
1.887378 18.14014 5.43E-05 28.99709 39.47749 28.99709 39.47749
RESIDUAL OUTPUT PROBABILITY OUTPUT
Predicted
Observation
Fertilizer Use Residuals
Standard
(kg/ha) Residuals Fertilizer
PercentileUse (kg/ha)
1 79.32203 0.677966 0.33068 8.333333 80
2 89.59322 0.40678 0.198408 25 90
3 99.86441 0.135593 0.066136 41.66667 100
4 113.5593 -3.55932 -1.73607 58.33333 110
5 120.4068 -0.40678 -0.19841 75 120
6 127.2542 2.745763 1.339255 91.66667 130
SUMMARY OUTPUT
Regression Statistics Revenue (₱ Million)
Multiple R 0.995695 Residual Plot
R Square 0.991408 Revenue (₱ Million)
50
Adjusted R Square
0.98926 Line Fit Plot
Normal Probability Plot
Residuals
Standard Error
25.17211
0 1500
Observations 6 1500
Business Permit
0 100
1000 200 300 400 500 600 Permit
Business
Business Permit
-50 500 1000
ANOVA
0 Revenue (₱ Million)
Predicted Business
df SS MS F Significance F 0 500
200 400 600 Permit
Regression 1 292465.5 292465.5 461.5675 2.78E-05 Revenue0 (₱ Million)
Residual 4 2534.541 633.6352 0 20 40 60 80 100
Total 5 295000 Sample Percentile
Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept -62.6957 41.44916 -1.51259 0.204928 -177.777 52.38558 -177.777 52.38558
Revenue 2.321154 (₱ Million)
0.10804 21.48412 2.78E-05 2.021186 2.621123 2.021186 2.621123
RESIDUAL OUTPUT PROBABILITY OUTPUT
Observation
Predicted Business Residuals
PermitStandard Residuals Percentile
Business Permit
1 517.5929 -17.5929 -0.7814 8.333333 500
2 633.6506 16.3494 0.726168 25 650
3 726.4968 -26.4968 -1.17687 41.66667 700
4 888.9776 11.02241 0.489567 58.33333 850
5 1213.939 -13.9392 -0.61912 75 900
6 819.343 30.65705 1.361651 91.66667 1200