Scribd
Upload
11 views6 pages

Simple Linear Regression

Uploaded by

Atul Sangal (SUSBS Associate Professor)
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
11 views6 pages

Simple Linear Regression

Uploaded by

Atul Sangal (SUSBS Associate Professor)
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Linear Regression

If the plot of n pairs of data (x , y) for an experiment appear to indicate a "linear relationship"
between y and x, then the method of least squares may be used to write a linear relationship
between x and y.

The least squares regression line is the line that minimizes the sum of the squares (d1 + d2 +
d3 + d4) of the vertical deviation from each data point to the line (see figure below as an
example of 4 points).

Figure 1. Linear regression where the sum of vertical distances d1 + d2 + d3 + d4 between


observed and predicted (line and its equation) values is minimized.

The least square regression line for the set of n data points is given by the equation of a line
in slope intercept form:

y=ax+b

where a and b are given by


Problem 1

Consider the following set of points: {(-2 , -1) , (1 , 1) , (3 , 2)}


a) Find the least square regression line for the given data points.
b) Plot the given points and the regression line in the same rectangular system of axes.

a.) Let us organize the data in a table.

x y xy x2

-2 -1 2 4

1 1 1 1

3 2 6 9

Σx = 2 Σy = 2 Σxy = 9 Σx2 = 14

We now use the above formula to calculate a and b as follows


a = (nΣx y - ΣxΣy) / (nΣx2 - (Σx)2) = (3*9 - 2*2) / (3*14 - 22) = 23/38
b = (1/n)(Σy - a Σx) = (1/3)(2 - (23/38)*2) = 5/19
b) We now graph the regression line given by y = a x + b and the given points.

Problem 2

a) Find the least square regression line for the following set of data
{(-1 , 0),(0 , 2),(1 , 4),(2 , 5)}

b) Plot the given points and the regression line in the same rectangular system of axes.

a) We use a table as follows

x y xy x2

-1 0 0 1

0 2 0 0

1 4 4 1

2 5 10 4

Σx = 2 Σy = 11 Σx y = 14 Σx2 = 6

We now use the above formula to calculate a and b as follows


a = (nΣx y - ΣxΣy) / (nΣx2 - (Σx)2) = (4*14 - 2*11) / (4*6 - 22) = 17/10 = 1.7
b = (1/n)(Σy - a Σx) = (1/4)(11 - 1.7*2) = 1.9
b) We now graph the regression line given by y = ax + b and the given points.
Problem 3

The values of y and their corresponding values of y are shown in the table below

x 0 1 2 3 4

y 2 3 5 4 6

a) Find the least square regression line y = a x + b.


b) Estimate the value of y when x = 10.

a) We use a table to calculate a and b.

x y xy x2

0 2 0 0

1 3 3 1

2 5 10 4

3 4 12 9

4 6 24 16

Σx = 10 Σy = 20 Σx y = 49 Σx2 = 30

We now calculate a and b using the least square regression formulas for a and b.
a = (nΣx y - ΣxΣy) / (nΣx2 - (Σx)2) = (5*49 - 10*20) / (5*30 - 102) = 0.9
b = (1/n)(Σy - a Σx) = (1/5)(20 - 0.9*10) = 2.2
b) Now that we have the least square regression line y = 0.9 x + 2.2, substitute x by 10 to find
the value of the corresponding y.
y = 0.9 * 10 + 2.2 = 11.2

Problem 4
The sales of a company (in million dollars) for each year are shown in the table
below.

x (year) 2005 2006 2007 2008 2009

y (sales) 12 19 29 37 45

a) Find the least square regression line y = a x + b.


b) Use the least squares regression line as a model to estimate the sales of the company in
2012.

1. a) We first change the variable x into t such that t = x - 2005 and therefore t represents
the number of years after 2005. Using t instead of x makes the numbers smaller and
therefore manageable. The table of values becomes.

t (years after 2005) 0 1 2 3 4

y (sales) 12 19 29 37 45

2.
We now use the table to calculate a and b included in the least regression line
formula.

t y ty t2

0 12 0 0

1 19 19 1

2 29 58 4

3 37 111 9

4 45 180 16

Σx = 10 Σy = 142 Σxy = 368 Σx2 = 30

We now calculate a and b using the least square regression formulas for a and b.
a = (nΣt y - ΣtΣy) / (nΣt2 - (Σt)2) = (5*368 - 10*142) / (5*30 - 102) = 8.4
b = (1/n)(Σy - a Σx) = (1/5)(142 - 8.4*10) = 11.6
b) In 2012, t = 2012 - 2005 = 7
The estimated sales in 2012 are: y = 8.4 * 7 + 11.6 = 70.4 million dollars.

You might also like