DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : M.L.Kameswari.
Designation : Sr. Lecturer
Branch : Commercial and Computer Practice
Institute : Govt Polytechnic for women ,
Bheemunipatnam.
Year/Semester : IV semester.
Subject : Quantitative Techniques-II
Sub. Code : CCP 403
Topic : Regression equations and regression
coefficients
Duration : 100 Minutes
Sub-topic : Calculation of Y value for the given
value of X
Teaching Aids : PPT.

CCP403.26 to 27 1
OBJECTIVES

On completion of this period, you would be able to

understand:

 Properties of Regression Coefficients

 Formulas for finding Regression Equation through

Regression Coefficients

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RECAP

Regression Equations can be solved through

b) Normal equations

c) Taking deviations from Actual Mean

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PROPERTIES OF REGRESSION
COEFFICIENTS

 Both Regression Coefficients (bxy and byx) should

not exceed one.
 Both the Regression Coefficients will have same
sign (+ or -).

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Regression Equations

For two variables X and Y there are two

Regression Equations, namely,
 Regression equation of X on Y, and

 Regression equation of Y on X.

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 Regression Lines

 Regression Line of Y on X - Most probable

values of Y for given value of X
 Regression Line of X on Y - Most probable value
of values of X for given value of Y.

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REGRESSION EQUATION OF X ON Y

(X-X) = r (σX/σY)(Y-Y)

X= AM of X series

Y= AM of Y series

r (σX/σY) is called Regression Co-efficient of X on Y

and denoted by the symbol bxy

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REGRESSION EQUATION OF Y ON
X

 (Y-Y) = r (σY/σX) (X-X)

 r (σX/σY) is called Regression Co-efficient of Y on

X and denoted by the symbol byx

CCP403.26 to 27 8
 WHEN DEVIATIONS ARE TAKEN
FROM ACTUAL MEAN (RE of X on Y)
 If deviations are taken from actual mean, no need
to calculate coefficient of correlation (r), σx and σy.

 In such cases r (σx/σy) = bxy = Σxy/ Σy2

where x=X, y=Y-Y

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 WHEN DEVIATIONS ARE TAKEN
FROM ASSUMED MEAN (RE of X on Y)
 If deviations are taken from assumed mean
Σdxdy- (Σdx. Σdy)/N
Or
(σx/σy) = bxy =
Σdy2- (Σdy)2/N
N Σdxdy - Σdx. Σdy

N Σdy2- (Σdy)2

 Where dx=X-A, dy=Y-A

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 WHEN DEVIATIONS ARE TAKEN
FROM ACTUAL MEAN (RE of Y on X)
r (σY/σX) = byx = Σxy / Σx2

 If deviations are taken from assumed mean

 r (σY/σX) = byx = Σdxdy- (Σdx. Σdy)/N

Σdx2- (Σdx)2/N
or
N Σdxdy - Σdx. Σdy

N Σdx2- (Σdx)2

CCP403.26 to 27 11
 Calculation of Correlation

 Steps for calculation of regression coefficients are

same as for correlation.
 With help of two regression coefficients,
correlation coefficient can be calculated
 denoted by ‘ r ‘

 r= √ bxy x byx

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Example 1

From the following data obtain the two Regression

Equations by taking deviations of X series from 5 and
of Y series from 7.

X 6 2 10 4 8
Y 9 11 5 8 7

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Solution to Ex. 1
Calculation of Regression Equations,
Regression Coefficients and Correlation Coefficient

X (X–5) dx2 Y (Y-7) dy2 dxdy

dx dy
6 +1 1 9 +2 4 +2
2 -3 9 11 +4 16 -12
10 +5 25 5 -2 4 -10
4 -1 1 8 +1 1 -1
8 +3 9 7 0 0 0
∑X=30 ∑dx=+ ∑dx2 = ∑Y=40 ∑dy = 5 ∑ dy2 = ∑ dxdy
5 45 25 = -21
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Solution:
Regression Equation of X on Y: X  X  bxy (Y  Y )

Σdxdy- (Σdx. Σdy)/N -21 – (5) . (5) / 5

bxy  ----------------------------- = --------------------------
Σdy2- (Σdy)2/N 25 – (5)2 / 5

= (-21 – 5) / 20 = -1.3

X  30 / 5  6; Y  40 / 5  8

Hence, the Regression Equation is,

X – 6 = -1.3 (Y – 8) = 1.3Y + 10.4 or X = 16.4 – 1.3Y

CCP403.26 to 27 15
Solution: continued
Regression Equation of Y on X: Y  Y  byx( X  X )
Σdxdy- (Σdx. Σdy)/N -21 – (5) . (5) / 5
byx  ----------------------------- = --------------------------
ΣdX2- (Σdx)2/N 45 – (5)2 / 5

= (-21 – 5) / 40 = -0.65

Hence, the Regression Equation is,

Y – 8 = -0.65 (X – 6) = -0.65X + 3.9 or Y = 11.9 – 0.65X

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Solution: continued

Correlation Coefficient = bxyXbyx

 1.3 X  0.65

 0.845

= 0.9192

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Summary

Properties of Regression are:

1) Regression Coefficients should not be >1

3) Calculation of Correlation Coefficient is

possible through Regression Coefficients

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Quiz

1) One of the Regression Coefficients

must be less than

2. Two

3. Three

4. One

5. Five

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Quiz

2) Both Regression Equations will

have the _____sign

2. Positive and negative

3. Negative and positive

4. Same

5. None of these

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Quiz

3) For two variables there are _____

Regressions Equations

2. Two

3. Three

4. Four

5. five

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Quiz

4) The Regression Line of X on Y gives the

most probable value of ________ for given
value of Y

2. X

3. Y

4. Z

5. XY

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 Frequently Asked Questions

1) List any two properties of Regression.

3) Write any four uses of Regression.

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 Assignment

1) Write down the various formulae to calculate

Regression Equations

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