Regression Technique

Sample Example:

Production Period
1
2
3
4
5
6
7

Total Cost
Total Output
(Y i )
(X i )
$100
0
150
5
160
8
240
10
230
15
370
23
410
25

Prepared by: Thun Kosal

Regression Technique

Y a bX

a b Y a bX

Y 87.08 12.21X

a 87.08

b 12.21

Y a bX

X X Y Y
X X
i

Y bX

X X Y Y 6, 245.71 12.21
511.43
X X
i

Y bX 237.14 12.2112.29 87.11

R2

total explained variation Y Y

total variation
Y Y
i

Prepared by: Thun Kosal

Regression Technique

R2

76, 274.48
0.954
79,942.86

R2 0.954

95%

Total cost

Output

t -test :

Sb

/ n 2

X X
2

Yi Yi

: Standard error of b

Where n is the number of observations

Select Values of the Students t Distribution for
95% confidence interval
Degree of Freedom
t-value
1
12.706
3
3.182
5
2.571
7
2.365
10
2.228
20
2.086
30
2.043
60
2.000
120
1.980

Sb

3, 668.38 / 5
1.1977
511.43

Prepared by: Thun Kosal

Regression Technique

n 2 7 2 5 t 2.571

b tnk 1Sb 12.21 2.5711.1977

, k is number of variables

9.13 b 15.29

b 12.21 9.13 15.29

b
12.21

10.196>2.571
Sb 1.198

Eviews5

Microsoft Office Excel 97-2003

test.xls

Excel

Save

Extension .xls

Save

Desktop

Eviews5
4

Prepared by: Thun Kosal

Regression Technique

Software Eviews5 Computer

folder Eviews5:

file Eviews 5.reg

double click

Yes

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Regression Technique

OK

Run Eviews5

double click

File: EViews5.exe

FileNewWorkfile

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Regression Technique

Workfile structure type:

Observations

Unstructured / Undated

OK

Prepared by: Thun Kosal

Regression Technique

Proc (Process)ImportLoad Workfile Page

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Regression Technique

Look in: Desktop

Files of type: Excel file (*.xls)
File name: test.xls

Open

Click: Next >

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Finish

Regression Technique

10

Quick Estimate Equation

ycx

Prepared by: Thun Kosal

Regression Technique

OK

Output

Output:

C (constant) a 87.10615

Prepared by: Thun Kosal

11

Regression Technique
X= b 12.21229
Std. Error (for b)=1.197732
t 10.19618
R-squared: R2 0.954112
Output

rqs

12

Prepared by: Thun Kosal