SIMPLE REGRESSION
Introduction to
Simple Regression
Simple regression is a fundamental statistical technique used to analyze the
relationship between two variables. Typically, one variable (the independent
variable) is used to predict or explain the values of another variable (the dependent
variable).
Imagine you want to understand how the amount of study time affects exam scores.
Here, study time is your independent variable, and exam scores are your dependent
Ka variable. Simple regression helps you analyze if there's a relationship between these
two variables.
It traces back its origin to 1877 where Sir Francis Galton used this concept for the
first time. He used regression as a method to predict This introductory section will
cover the basic concepts and applications of simple regression analysis .
uDirectand Indirect
Relationship
Direct and Indirect
Relationships:
•Direct Relationship: In a direct
relationship, as one variable
increases, the other variable also
increases. For instance, more study
time often leads to higher exam
scores.
Indirect Relationship: In an
indirect relationship (also known as
an inverse relationship), as one
Scatter Diagram Method
The scatter diagram method is a graphical
technique used to visualize the relationship
between two variables. By plotting the data
points on a coordinate plane, patterns and
trends can be easily identified, allowing the
analyst to make informed decisions about the
nature of the relationship.
Assumptions of Scatter
Diagram Method and
1. The scatter diagram assumes a linear
relationship between the two variables.
2. The relationship can be positive,
negative, or no relationship
3. (independent).
The strength of the relationship can be
strong, moderate, or weak, depending
on the clustering of data points around a
line.
Regression Line Equation
and Its Usage
The regression line equation, often denoted as y = a +
bx, represents the best-fit line that summarizes the linear
relationship between the two variables. The slope b
indicates the average change in the dependent variable y
for a one-unit change in the independent variable x. This
equation allows us to predict the value of y given a
specific value of x.
Least Squares Method
Regression Line Equation
The least square method is finding the best-fitting curve for a set of data points by
reducing the sum of squares of the offsets (residual parts) of the points from the
curve.
The least squares method determines the slope (b) and intercept (a) of the
regression line equation: ŷ = a + bX.
To find the best-fitting line one method is to use the total error. But this method is
not always reliable.
To solve this we will only consider summing absolute values
But still the magnitude of error is not focused. We can accomplish this if we square
the individual errors before we add them. Thus the method is called Least Square
We can derive equations for:-
Properties of least square
1. The least squares regression line always goes through
the point (X,Y) of the mean of the data.
2. The sum of the deviations of the observed values of Y
from the least square regression line is always zero.
3. The sum of the squares of the deviations of the
observed values in front of the line is a minimum.
4. The least square regression line obtained from a
random sample is the line of best fit because a and b
are the unbiased estimates of parameters a and b.
Standard error of estimation
The observed values of (X, Y) do not fall on the regression line
but they scatter away from it.
The degree of scatter or dispersion of the observed values
about the regression line is measured by what is called the
standard error of estimate.
Conclusion and Key
Takeaways
1. Simple regression analysis is a powerful tool for understanding
the linear relationship between two variables and making
predictions based on this relationship.
.2.The means of identifying patterns and trends, while the least he
scatter diagram method provides a visual squares method
offers a robust, data-driven approach to determining the regression
line equation.
3. Careful consideration of model assumptions and thorough
analysis of error metrics are crucial for ensuring the
reliability and interpretability of regression results.
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