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.
Want to read all 26 pages?
- Fall '14
- Regression Analysis, Lorenzo