Regression Analysis, AVONA, and Chi-square Test-ECO6416

# Regression Analysis, AVONA, and Chi-square Test-ECO6416 -...

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Regression Analysis, ANOVA, and Chi-square Test There are close relationships among linear regression, analysis of variance and the Chi-square test. To illustrate the relationship, consider the following application: Relationship between age and income in a given neighborhood: A random survey sampling of size 33 individuals in a neighborhood revealed the following pairs of data. For each pair age is in years and the indicated income is in thousands of dollars: - Relation between Age and Income(\$1000) - Age Income Age Income Age Income 20 15 42 19 61 13 22 13 47 17 62 14 23 17 53 13 65 9 28 19 55 18 67 7 35 15 41 21 72 7 24 21 53 39 65 22 26 26 57 28 65 24 29 27 58 22 69 27 39 31 58 29 71 22 31 16 46 27 69 9 37 19 44 35 62 21 Constructing a linear regression gives us: Income = 22.88 - 0.05834 (Age) This suggests a negative relationship; as people get older, they have lower income, on average. Although slope is small, it cannot be considered as zero, since the t-statistic for it is -0.70, which

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Regression Analysis, AVONA, and Chi-square Test-ECO6416 -...

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