Sessions 6&7.ppt - MIM FEB2019 Quantitative Methods Sessions 6&7 Regression Analysis Lorenzo Angel D\u00edazPascual 2014 Linear regression introduction

# Sessions 6&7.ppt - MIM FEB2019 Quantitative Methods...

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Angel Díaz 2014 Sessions 6&7: Regression Analysis Quantitative Methods MIM FEB2019 Lorenzo Pascual Angel Díaz 2014 Linear regression: introduction Lorenzo Pascual Angel Díaz 2014 Correlation and regression análisis We start analyzing the relationship between only two variables A dependent variable (Y) and an independent one (X) Under the assumption that the best representation of the perfect relationship is a straight (linear) regression line fitted to the observed data Correlation and regression analysis involves determining and measuring the linear relationship between two or more variables Regression deals with determining a mathematical expression to describe the relationship Correlation is to measure de degreee of this relationwhip The simple linear case Lorenzo Pascual Angel Díaz 2014 The simple linear case Lorenzo Pascual Angel Díaz 2014 The correlation between two random variables is a measure of the linear relationship between them. The correlation is a number between -1 and 1 . If the linear relatioship is positive means that Y increases when X does increase We have the opposite when the correlation between then is negative The simple linear case Lorenzo Pascual Angel Díaz 2014 Simulated examples with correlation coefficients of 0,95 (left) and 0,6 (right)  #### You've reached the end of your free preview.

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