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Simple Linear Regression

You are a manufacturer who wants to obtain a quality measure on a product, but the procedure to obtain the measure is expensive. There is an indirect approach, which uses a different product score (Score 1) in place of the actual quality measure (Score 2). This approach is less costly but also is less precise. You can use regression to see if Score 1 explains a significant amount of variance in Score 2 to determine if Score 1 is an acceptable substitute for Score 2. 1. 2. 3. 4. 5. Open the worksheet EXH_REGR.MTW. Choose Stat > Regression > Regression. In Response, enter Score2. In Predictors, enter Score1. Click OK . Regression Analysis: Score2 versus Score1
The regression equation is Score2 = 1.12 + 0.218 Score1 Predictor Coef Constant 1.1177 Score1 0.21767 s = 0.127419 SE Coef 0.1093 0.01740 T 10.23 12.51 P 0.000 0.000

R-Sq = 95.7%

R-Sq(adj) = 95.1%

Analysis of Variance Source DF Regression 1 Residual Error 7 Total 8 Unusual Observations Obs 9 Score1 Score2 Fit 7.50 2.5000 2.7502 SE Fit 0.0519 Residual -0.2502 St. Resid -2.15R SS 2.5419 0.1136 2.6556 MS 2.5419 0.0162 F 156.56 P 0.00

R denotes an observation with a large standardized residual. Session Window Output

Interpreting the results

Minitab displays the results in the Session window by default. The p-value in the Analysis of Variance table (0.000), indicates that the relationship between Score 1 and Score 2 is statistically significant at an -level of .05. This is also shown by the p-value for the estimated coefficient of Score 1, which is 0.000. The R2 value shows that Score 1 explains 95.7% of the variance in Score 2, indicating that the model fits the data extremely well. Observation 9 is identified as an unusual observation because its standardized residual is less than -2. This could indicate that this observation is an outlier. See Identifying outliers.

Because the model is significant and explains a large part of the variance in Score 2, the manufacturer decides to use Score 1 in place of Score 2 as a quality measure for the product.

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