DSC 203 Lecture Notes - Chapter 13

# DSC 203 Lecture Notes - Chapter 13 - 1 Introduction to...

This preview shows pages 1–3. Sign up to view the full content.

1 Introduction to Regression Analysis We wish to study the relationship between 2 or more variables We define: y = the dependent variable x = independent (predictor) variable We wish to predict y on the basis of x . Example: y = sales of a product x = price of the product Assuming a linear (straight line) relationship between y and x, we wish to find a prediction equation Predicted value of y intercept y ˆ = b 0 + b 1 x slope Simple Linear Regression One Straight Line Predictor Relationship Variable We use data concerning both x and y to find numerical values for b 0 and b 1 .

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2 Multiple Regression We predict y by using more than one independent (predictor) variable. Example: y = sales x 1 = price x 2 = advertising budget x 3 = type of advertising ( TV, radio, print, etc.) The prediction equation might have the following form: y ˆ = b 0 + b 1 x 1 + b 2 x 2 + b 3 x 3 We find numerical values of b 0 , b 1 , b 2 , and b 3 by using data concerning y , x 1 , x 2 , and x 3 .
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern