CHAPTER 14 TOOLS

14.2
Correlation Coefficient
n 8
r 0.869374114 y x
r =CORREL(array 1, array 2) 0.869374114
Starting
Salary
GPA
2,700 3.2
2,800 3.4
2,200 2.6
2,700 3.4
3,200 3.7
2,900 3.9
2,100 2.5
2,300 3.3
y x
20,900 26
Significance of the Correlation Coefficient - Hypothesis Testing When the Correlation Coefficient is equal to zero, there is no realtionship between x and y.
(Correlation Coefficient)
0.01
r -0.68377
n (number of ordered pairs) 11
t (Test Statistic for ) = r / (1-r
2
)/(n -2)] -2.81117822
degrees of freedom 9
t
/2
(critical t score)(see table 5 in appendix) 2.353
14.3
Regression Line Equation and Slope
^
y = a + bx
n 8
b 1.815730337
a 2.905617978
x
Temperat
ure
Total Sum of Squares 21
SST (equal to SSE + SSR) 730 13
21
SSE (Sum of Squares Error) 179.8337079 20
8
SSR (Sum of Squares Regression) 550.1662921 14
19
Sample Coefficient of Determination (
2
is the population coefficient of determination)> 21
R
2
= SSR / SST 0.753652455
F Test Statistic
F = SSR / (SSE/(n-2)) 18.35583435
x
Critical F Score 137
D
1
(SSR Degrees of Freedom always equals 1) 1
D
2
(SSE Degrees of Freedom is n-2) 6
USE THE RIGHT TABLE FOR THE RIGHT
14.4
Confidence Interval and Prediction Interval Construction
Use phStat on the data provided Year GPA
INCLUDE THE DATA COLUMN NAMES 1 3.07
2 2.88
3 2.96
4 2.85
5 2.98
6 3.05
7 3.07
8 2.99
9 3.19
10 3.14
11 3.16
14.5 CI = b t
/2
* s
b
x
a= 17.54340071 Minutes
b= -0.562425684 3
8
n= 10 0
SSE= 30.29726516 6
s
e
= 1.946062215 6
s
b
= 0.21220652 1
= 4.7 9
0.05 2
df(n-2)= 8 7
t
/2
= 2.306 5
UCL= -0.07307745
LCL= -1.051773918
SST= 56.9
SSR= 26.60273484 x
47
If actual value isn't specified for the
confidence and prediction interval x value,
insert the last value of x if the data on the x
axis is chronological. You can use the ANOVA
table to find the P value and other fun stuff!
R
2
= SSR / SST 0.467534883
F = SSR / (SSE/(n-2)) 7.024458399
t= (b-) / s
b
(assuming = 0 ) -2.650369483
Cumulative Probabilities for standard normal distribution tables are on page 858 and 859
WORKING ZONE-------------------------------------------
Minutes Rating
xy y
2
x
2
3 14
8 13
8640 7,290,000 10.24 0 17
9520 7,840,000 11.56 6 11
5720 4,840,000 6.76 6 15
9180 7,290,000 11.56 1 17
11840 10,240,000 13.69 9 14
11310 8,410,000 15.21 2 20
5250 4,410,000 6.25 7 14
7590 5,290,000 10.89 5 14
xy y
2
x
2
-0.68377
69050 55,610,000 86.16
When the Correlation Coefficient is equal to zero, there is no realtionship between x and y.
y xy x
2
y
2
Demand
47 987 441 2209
30 390 169 900
36 756 441 1296
40 800 400 1600
16 128 64 256
25 350 196 625
44 836 361 1936
34 714 441 1156
>
2
measures the percentage of the dependent
variable's total variation that can be explained by an
independent variable
y xy x
2
y
2
272 4961 2513 9978
(see cumulative probabilities for sandard normal distribution table)
In the two tail test, the yielded p is multiplied by two.
y xy
x
2
y
2
Rating 16.98098
14 42 9 196 16.41855 0.562426
13 104 64 169
17 0 0 289
11 66 36 121
15 90 36 225
17 17 1 289
14 126 81 196
20 40 4 400
14 98 49 196
14 70 25 196
y xy x
2
y
2
149 653 305 2277
>
2
measures the percentage of the dependent
variable's total variation that can be explained by an
independent variable
When
2
is equal to zero, that means that variation in y
outcomes is not explained by x data values; which
indicates that there is no relationship between x and y.
The p value is the probability of observing a sample mean at least as extreme as the one
selected for the hypothesis test, assuming the null hypothesis is true.
>
2
measures the percentage of the dependent
variable's total variation that can be explained by an
independent variable
>
2
measures the percentage of the dependent
variable's total variation that can be explained by an
independent variable
When
2
is equal to zero, that means that variation in y
outcomes is not explained by x data values; which
indicates that there is no relationship between x and y.