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MATH 2400

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This is probably not the Princeton University, Nobel prize-winning economist Paul Krugman. (a) b = 0.5 = 0.1, and a = 75 (0.1)(280) = 47. – PowerPoint PPT presentation

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Title: MATH 2400


1
MATH 2400
  • Chapter 5 Notes

2
Regression Line
  • Uses data to create a linear equation in the form
    y ax b where
  • a is the slope of the line (unit rate of
    change)
  • b is the y-intercept (initial value)
  • Can be used generalize a set of data, to estimate
    a value, or predict a value.

3
Example 1 (Exercise 5.1)
  • We expect a cars highway gas mileage to be
    related to its city gas mileage. Data for all
    1040 vehicles in the governments 2010 Fuel
    Economy Guide give the regression line
  • HWY MPG 6.554 (1.016 x CITY MPG)
  • for predicting highway mileage from city mileage.
  • What is the slope of this line? Say in words
    what the numerical value of the slope tells you.
  • What is the intercept? Explain why the value of
    the intercept is not statistically meaningful.
  • Find the predicted highway mileage for a car that
    gets 16 mpg in the city. Do the same for a car
    with city mileage 28 mpg.

4
Example 2 (Exercise 5.2sort of)
  • You use the same bottle of body wash every day.
    The volume was initially 355 ml. You estimate
    you use 7 ml of body wash each day. What is the
    equation of the regression line for predicting
    the volume of body wash left in the bottle after
    each day?

5
Least-Square Regression Line
  •  

 
 
6
Example 3
  • This table displays the data regarding 8 U.S
    airports and their total number of passengers for
    the year 1992 and 2005. Use the 1992 data as the
    explanatory variable and the 2005 data as the
    response variable. Create a least-squares
    regression line and use that line to estimate how
    many passengers Raleigh-Durham International had
    in 2005 if the airport had 4.9 million passengers
    in1992.

7
r and r2
  • r tells us if there is a positive or negative
    relationship between the explanatory variable and
    the response variable.
  • r also tells us how strong of a relationship the
    variables have.
  • r2 tells us what portion of the linear
    relationship between the variables can be
    explained by the explanatory variable.
  • 1 r2 tells us what portion of the linear
    relationship between the variables can not be
    explained by the explanatory variable.
  • Ex If r 0.6, ? r2 0.36. 36 of the linear
    relationship can be explained by the explanatory
    variable and 64 cannot be explained.
  • Ex If r -1, ? r2 1. 100 of the linear
    relationship can be explained by the explanatory
    variable and 0 cannot be explained.

8
Example 4
9
Example 5
10
Residuals
  • A residual is the difference between an observed
    value of the response variable and the value
    predicted by the regression line. That is, a
    residual is the prediction error that remains
    after we have chosen the regression line
  • Residual observed y predicted y
  • y -

 
11
Residualscontinued
  • A residual plot makes it easier to see unusual
    observations and patterns. The regression line
    is horizontal (think about it).

12
Residual Graphing
  • Use the following data to create a least-squares
    regression line and plot the residuals on the
    graph provided.

AGE HEIGHT
0 20
1 31
2 36
3 39
4 43
5 46
6 48
7 51
8 54
9 56
13
CAUTION!!!
  • Correlation and regression lines describe only
    linear relationships.
  • Correlation and least-squares regression lines
    are not resistant to influential data (data
    drastically outside the norm). We should always
    plot our data and look for observations that
    might be influential.
  • Ecological Correlation is based on averages
    rather than on individuals.
  • Ex There is a large positive correlation
    between average income and number of years of
    education. The correlation is smaller if we
    compare the incomes of individuals with number of
    years of education. The correlation based on
    average income ignores the large variation in the
    incomes of individuals having the same amount of
    education.

14
CAUTION!!!
  • Extrapolation is the use of a regression line for
    prediction far outside the range of values of the
    explanatory variable that you used to obtain the
    line.
  • Ex Using the least-squares regression line for
    the height of the child from ages 0-9 to predict
    their height at age 30.
  • Lurking Variables should always be thought about
    before drawing conclusions based on correlation
    or regression.

15
Correlation ? Causation???
  • NO!!!
  • A serious study once found that people with two
    cars live longer than people who own only one
    car. Owning three cars is even better, and so
    on. There is a substantial positive correlation
    between number of cars x and length of life y.
  • Lurking variables?

16
HW 5.17
17
HW 5.25
18
HW 5.27
19
HW 5.29
20
HW 5.53
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