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Assignment 2 EDC
1. Using the1503
following formulas to calculate the regression model:
Introduction
Suppose you want to estimate what score you will get on the final
exam. Based on the discussion with the lecturer, you learn that the test
is designed to yield a mean of approximately 75. However, you already
know that you scored 74 on the midterm where the mean is 70. How
can you use this info to make prediction?
Further investigation yields the info that the SD of the midterm was 4.
Thus your z-score is (74-70)/4 = 1 standard deviation above the mean.
Therefore if your performance is consistent and the lecturers
prediction is correct, you would probably score 79 in the final. Is there
enough info for you to make the prediction?
What about the relationship between the scores in midterm and final? If
there is, then you will have a more accurate prediction. If the
correlation coeff. is perfect (r = 1.00), then you are right. What if r = 0?
Then you cannot use the midterm to predict your final mark. What if r
= 0.86?
The first picture shows hypothetical plots when r = 0 and r = 0.86
Line of best fit (regression line) for midterm and final grades, y = 11.4 + .
915(x)
Monthl Annual
y
Income
salary
2,000
24,000
2,050
24,600
2,200
26,400
2,275
27,300
2,350
28,200
2,425
29,100
2,500
30,000
H
2,600
31,200
Suppose that the firm added a $1000 bonus at the end of the year. Now the
equation becomes Y = 1000 + 12(X)
In behavioural research, it is rare for data to fall exactly on a straight line. So
we must find a line of best fit regression line.
4.8
.2
6.6
-.6
8.4
.6
10 10.2 -.2
Y =
(Y-Y)
+ r
The
sum of squared differences is s2 = (Y Y)2 when divided by N-2
will give us the residual variance. The variance around the regression
line is also called error variation.
Lets
From
(Y )2 = (Y - )2 + (Y Y)2
+ Unexplained