QUESTION 3

a) Explain the meaning of the following terms used in simple linear

regression analysis
1) The model is significant
-It simply means that we are very sure that the model we are testing is reliable
2) Homoscedasticity
-The error variance must be constant. We can use the plot of residual against
predictor variable. The scatter diagram should be plotted random and spread
along a horizontal bar
3) Coefficient of determination
-measures the percentage variation in Y that is explained by X
4) Lack of fit test
-Used to determine whether a specific type of regression function adequately fits
the data. That is, we want to see whether a linear regression function is a good fit
for the data

b) i)
Hypothesis
H 0 : E (Y )= 0+ 1 X (the linear model fits the data)
H 1: E (Y ) 0+ 1 X

(the linear model does not fit the data)

Test Statistic
j

Hardwood
concentration(%),X

2
2
2
4
6
6
8
8
10
12
12
12
14

2
3
4
5
6
7

Strength,
Y
114
120
110
126
117
134
129
149
150
140
158
123
175
Total

(Y y )
114.67
126
125.5
139
150
140.33
175

0.4489
28.4089
21.8089
0
72.25
72.25
100
100
0
0.1089
312.2289
300.3289
0
1007.8334

df

nj

(n-1)
2

0
1

1
2

0
2

1
3

0
6

1
13

From ANOVA table,

SSE=1719.313
Calculate,
SSLOF =SSESSPE
=1719.313-1007.8334
=711.4796

SSLOF
C2

MSLOP =

711.4796
72

=142.2959

MSPE =
=

SSPE
N C
1007.8334
137

=167.9722

F LOF

MSLOF
MSPE

142.2959
167.9722
= 0.8471

At

= 0.05

Fc = F ,c2,nc = F0.05,5,6 = 4.39

.: since

F LOF < 4.39 , H 0

is accepted the linear model fits the data.

ii) The following plots were obtained from the above regression analysis. Explain what
these plots show and then comment on the adequacy of the model.

Answer:
The P-P plot of residual show that the points are close and on the 45 degree line so we
can assume that the error variable are normally distributed.

The plot of residual against predicted value is not random and does not spread along a
horizontal bar so we can assume that the error variance is not constant
(heteroscedasticity).
Then we can conclude that the model is not adequate.