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Unformatted text preview: ificance F
3.21376E05 74.67324 t Stat Pvalue Lower
95% Upper
95% Lower
95.0% Upper 95.0% 384.214
5.22289
0.0008
3566 148.854 384.214 148.854
4.44189
8.346638 3.21E05
4225 7.833269 4.441894 7.833269 Another example Example: Reed Auto Sales
Reed Auto periodically has
a special weeklong sale.
As part of the advertising
campaign Reed runs one or
more television commercials
during the weekend preceding the sale. Data from a
sample of 5 previous sales are shown on the next slide. Simple Linear Regression Example: Reed Auto Sales
Number of
TV Ads
1
3
2
1
3 Number of
Cars Sold
14
24
18
17
27 Linear trend line
30 Cars Sold 25
20
y = 5x + 10
15
10
5
0
0 1 2
TV Ads 3 4 Coefficient of Determination Relationship Among SST, SSR, SSE
SST = SSR + SSE ˆ
ˆ
( yi y )2 ( yi y )2 ( yi yi )2 where:
SST = SSyy =total sum of squares
SSR = sum of squares due to regression
SSE = sum of squares due to error Coefficient of Determination The coefficient of determination is:
SSR SS yy SSE
r SST
SS yy
2 where:
SSR = sum of squares due to regression
SST = total sum of squares
r2 = SSR/SST = 100/114 = .8772
The regression relationship is very strong; 88%
of the variability in the number of c...
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This note was uploaded on 09/28/2011 for the course STAT METHO 33:623:385 taught by Professor Faridalizadeh during the Spring '11 term at Rutgers.
 Spring '11
 FaridAlizadeh

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