Eco 221 Linear Regression Final Notes

Eco 221 Linear Regression Final Notes - Linear Regression:...

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Linear Regression: problem #3 Step 1 . Make statement about relationship. (write it down) -“ Justified in the field of marketing. ” (another field would be finance) Step 2. Sampling: . - “ Positive linear. ” Step 3 . Make linear regression model : (no computer symbol for b – just use a & b & put a little curve over a & b like its x Space y Sales xy x^2 y^2 5 1.6 8.00 25 2.56 5 2.2 11.00 25 4.84 5 1.4 7.00 25 1.96 10 1.9 19.00 100 3.61 10 2.4 24.00 100 5.76 10 2.6 26.00 100 6.76 15 2.3 34.50 225 5.29 15 2.7 40.50 225 7.29 15 2.8 42.00 225 7.84 20 2.6 52.00 400 6.76 20 2.9 58.00 400 8.41 20 3.1 62.00 400 9.61 150 28.5 384 2250 70.69 1. find Find b first: (need for a-hat formula-don’t write “hat” just write ) a. b-hat = xy – n(xbar)(ybar) x^2- n(xbar)^2 .072 = 384 – 12(12.5)(2.38) 2250 – (12) (12.5)^2 b. a-hat = ybar –(b-hat)(xbar)
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Eco 221 Linear Regression Final Notes - Linear Regression:...

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