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# OLS Example

Sample Data (X’s):

Line of Best Fit (βX):

How can we use data to make predictions? Data usually are scattered around, we plot them
to a graph and get a scattergraph, we call the data set ‘X’s’ on the X axis.
We want to predict when we will get a given Y on the vertical axis when we get an X. How?
We can make an equation if we get the average of the squared X’s, to make an average line.
This is a “Regression” equation. We can then say Y= 2.0 + 4/3X + e (rounding error).
Do we see how this equation seems to fit the data ? If X = 6? Y = 2.0 + 4/3 (6) =?)
Why can’t we average the X’s, not the squares? Try to average:
1.3X – 1.3X + 1.3 X – 1.3X etc.. What happens? Or here (6-4)+ (2-4) + (3-6) + (7+3)…?
If an average is made up of differences like 2 + 4 + 4 +2 / n = 12/4 =3. Then what happens
when we subtract all the differences from the average? 2-3 + 4-3 + 4-3 + 2-3=?
So use squares, eliminates the negatives.
Simple linear Regression
A simple linear model in which the value of one variable can be used to predict the value
of an outcome variable. The formula for a straight line is the basis for this model:
Yi = (b0+b1Xi) + εi

Y = outcome variable, X = explanatory variable, b0 = value of outcome when explanatory
variable has a value of zero (intercept), b1 = regression coefficient for the explanatory
variable, εi = error.

click on XY (Scatter). then release the mouse button. Click on Next>. to "drag" means to place the mouse cursor on a position. Dragging is used not only to move objects but also to highlight text. For example. data. The procedure for constructing a least-squares graph using Microsoft Excel is outlined below.. Under Chart sub-type:. place the mouse cursor on cell A1 and drag the mouse cursor to cell A4. etc. 3. Click on Insert on the menu bar. 1. . Enter your data into the spreadsheet. Both columns of data should be highlighted. Constructing a Least-Squares Graph Using Microsoft Excel Simple spreadsheet programs such as Microsoft Excel or Quattro Pro are powerful tools for many types of calculations in chemistry. Under Standard Types. Click on Chart. Then use Excel to get this result. Homework: Obtain a series of data by year. if you want to plot the data contained in cells 1-4 of columns A and B. cells 1-4 of columns A and C).. It is often easier to put similar types of data into columns rather than rows (although this is not a requirement). One of the most often used functions of a spreadsheet program is to construct graphs. place the mouse cursor on cell C1 and drag to cell C4.. Due by end of the week.g. 2. while holding down the CTRL key on the keyboard. 5. 4. Note that "click" means to put the mouse cursor on a position and press the left mouse button once. place the mouse cursor on cell A1 and drag the mouse cursor to cell B4. Then. Simple linear regression models can be represented as 'lines of best fit' or regression lines on scatterplots (shown below). to "double-click" means to press the left mouse button twice rapidly. and get 12 data points (months or years for example). click on the chart with only data markers and no lines. Click on Next>. 8. 6. Select (highlight) the data that you want to include in the graph. like GDP in the USA or Stock Prices for a company. move the mouse cursor to a different position. press and hold the left mouse button.. If the data you want to include happen to be in two columns that are not adjacent (e. 7. Chart type:.

Click on Next>. Placement of the legend on the graph can also be selected here. .. Click in the checkbox next to Display equation on chart and the checkbox next to Display R-squared value on chart. click in the text box under Chart title: and enter a title for the graph. All of the data points should now be highlighted.. Click on the Legend tab. From within the Add Trendline window. a. Do not click on the checkbox next to "Set Intercept = 0". d. 13.. c.g. click on the radio button next to As new sheet:. Click on Options at the top of the Add Trendline window. and click on Add Trendline. 15. Now. 11. At this point you have created an X-Y plot of the data. Enter a name for the graph in the highlighted text box.9. Move the mouse cursor to any data point and press the left mouse button. 12. Click in the checkbox next to Show legend to turn the legend on or off. Click on the Data Labels tab. Click on OK. Linear). under Type. Under Place chart:. click on the box with the type of fit you want (e. Click on Finish. Click in the checkboxes to turn gridlines on or off. click in the text box under Value (Y) axis: and enter a title for the y-axis. b. Click in the checkboxes to turn a data table on or off. 10. Click on the Data Table tab. while the mouse cursor is still on any one of the highlighted data points. Under Titles. 16. click in the text box under Category (X) axis: and enter a title for the x-axis. c. a. e. press the right mouse button. 14. from the menu that appears. b. Click on the Gridlines tab. Click on the radio buttons to turn data labels on or off.