Delineate the properties of regression coefficients.

Answer: Different kinds of regression coefficients are delineated below:

1) The range of regression coefficients is
2) The correlation coefficient between two variables is the
geometric mean of the two regression coefficient .
3) The sign of correlation coefficient and regression coefficients are always
same. Notationally,
4) If the variables are independent, the regression coefficients are
zero. This is known as the independence property of regression
coefficients.

Coefficient of determination (goodness of fit):

The overall goodness of fit of the regression model is measured by the

coefficient of determination, denoted by , measures the proportion or
percentage of the total variation in dependent variable explained by the
regression model.

Properties of :

I. It is a non negative value.

II. It’s limits are It is closer 1 , the model is better fit.

 :::::::::::::::::::::::::::::: Applications ::::::::::::::::::::::

1) The following table gives information on the amount of sugar (in grams)
and the calorie count in one serving of a sample of 13 varieties of Kellogg’s
cereal.
Sugar 4 15 12 11 8 6 7 2 7 14 20 3 13
Calories 120 200 140 110 120 80 190 100 120 190 190 110 120

i. Construct a scatter diagram for these data. Does the scatter diagram
exhibit a linear relationship between the amount of sugar and the
number of calories per serving?
ii. Find the predictive regression equation of the number of calories on the
amount of sugar.
iii. Give a brief interpretation of the values of and .
iv. Estimate the calorie count for a cereal with 52 grams of sugar per
serving. Comment on this finding.

2) The following table gives information on GPAs and starting salaries

(rounded to the nearest thou-sand dollars) of seven recent college
graduates.
GPA 2.90 3.81 3.20 2.42 3.94 2.05 2.25
Starting 48 53 50 37 65 32 37
salary
i. With GPA as an independent variable and starting salary as a dependent
variable, find the least squares regression line.
ii. Interpret the meaning of the values of and calculated in part (i).
iii. Find the predictive salary for GPA 4.00 and interpret the result.

3) The following data give information on the lowest cost ticket price (in
dollars) and the average attendance (rounded to the nearest thousand) for
the last year for six football teams.

Ticket 38.50 26.50 34.00 45.50 59.50 36.00

price
Attendence 56 65 71 69 55 42
 i. Taking ticket price as an independent variable and attendance as a
dependent variable, find the least squares regression line.
ii. Briefly explain the meaning of the values of regression coefficient
iii. Calculate the expected number of attendance if the ticket price is
65.
4) A fast food shop decided to carry out an experiment to assess the influence
of advertising expenditure on sales. Different relatives changes in
advertising expenditure compared to the previous year were made in
eight regions of the country and resulting changes in sales level were
observed. The accompanying table shows the results
Increase in 0 4 14 10 9 8 6 1
advertising
expenditure
(%)
Increase in 2.4 7.2 10.3 9.1 10.2 4.1 7.6 3.5
sales
i. Estimate by least squares the linear regression of increase in sales on
increase in advertising expenditure.