Module 4

Normal Distribution
and Regression
Prepared by: Engr. Franz Ivan E. Serrato
Content of this module
● Normal Distribution

● Pearson Product Moment of Correlation

● Linear Regression Equation

 01
Normal Distribution
Normal Distribution
In the study of statistics, the normal distribution plays a central role.
It is sometimes called the normal curve.
We can find the area under the curve using the table.

A normal distribution is a continuous, symmetric, bell-shaped distribution of a variable.

The known characteristics of the normal curve make it possible to estimate the
probability of occurrence of any value of a normally distributed variable.
Normal Distribution
Properties of the Normal Distribution:
• The distribution is bell-shaped.
• The mean, median, and mode are equal and are located at the center of the distribution.
• It has a mean of 0 and a standard deviation of 1.
• The normal distribution is unimodal.
• The normal distribution is continuous.
• The normal distribution is asymptotic. ( it never touches the x-axis )
• The normal distribution is symmetric about the mean.
• The total area under the curve is 1.00 or 100%. Half a curve has an area of 0.50 or 50%
• The area under the part of the normal curve that lies within 1 standard deviation of the mean is
about 68.27%, within 2 standard deviations is about 95.45%, within 3 standard deviations is
about 99.73%.
Normal Distribution
Standard Normal Table:

A normal distribution can be converted to a

standard normal distribution by obtaining the z
value (z-scores).
To determine the probability that x lies in a given
interval, we need to get the area under the
curve. To do this, convert the interval into z scale
and then compute the probability by using the
standard normal distribution table.
Normal Distribution
Standard Normal Table:

A normal distribution can be converted to a

standard normal distribution by obtaining the z
value (z-scores).
To determine the probability that x lies in a given
interval, we need to get the area under the
curve. To do this, convert the interval into z scale
and then compute the probability by using the
standard normal distribution table.

Use the table to find the values of the area between

zero and the following z-values:
z=0.67
z=1.33
z=2.01
z=1.88
Normal Distribution
Standard Normal Table:

A normal distribution can be converted to a

standard normal distribution by obtaining the z
value (z-scores).
To determine the probability that x lies in a given
interval, we need to get the area under the
curve. To do this, convert the interval into z scale
and then compute the probability by using the
standard normal distribution table.

Use the table to find the values of the area between

zero and the following z-values:
z=0.67
z=1.33
z=2.01
z=1.88

What about for negative z-scores? Negative z-

scores are indicated on the left side of the curve.
Normal Distribution
Examples:
1. Between z = 0 and z = 1.85 𝑷(𝟎 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)
Normal Distribution
Examples:
1. Between z = 0 and z = 1.85 𝑷(𝟎 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)

From the table, the area between 0 and 1.85 is 0.4678

Therefore, the probability is 46.78%
Normal Distribution
Examples:
1. Between z = 0 and z = 1.85 𝑷(𝟎 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)

From the table, the area between 0 and 1.85 is 0.4678

Therefore, the probability is 46.78%
Normal Distribution
Examples:
2. Between z = 0 and z = -1.15 𝑷(𝟎 ≤ 𝒛 ≤ −𝟏. 𝟏𝟓)
Normal Distribution
Examples:
2. Between z = 0 and z = -1.15 𝑷(𝟎 ≤ 𝒛 ≤ −𝟏. 𝟏𝟓)

From the table, the area between 0 and -1.15 is 0.3749

Therefore, the probability is 37.49%
Normal Distribution
Examples:
2. Between z = 0 and z = -1.15 𝑷(𝟎 ≤ 𝒛 ≤ −𝟏. 𝟏𝟓)

From the table, the area between 0 and -1.15 is 0.3749

Therefore, the probability is 37.49%
Normal Distribution
Examples:
3. Right of z=1.15 𝑷(𝒛 > 𝟏. 𝟏𝟓)
Normal Distribution
Examples:
3. Right of z=1.15 𝑷(𝒛 > 𝟏. 𝟏𝟓)

From the table, the area between 0 and 1.15 is 0.3749

Normal Distribution
Examples:
3. Right of z=1.15 𝑷(𝒛 > 𝟏. 𝟏𝟓)

From the table, the area between 0 and 1.15 is 0.3749

To get the area to the right of z=1.15, we subtract it
from 0.50 which is the area of half the curve.
0.50 - 0.3749 = 0.1251
Therefore, the probability is 12.51%
Normal Distribution
Examples:
3. Right of z=1.15 𝑷(𝒛 > 𝟏. 𝟏𝟓)

From the table, the area between 0 and 1.15 is 0.3749

To get the area to the right of z=1.15, we subtract it
from 0.50 which is the area of half the curve.
0.50 - 0.3749 = 0.1251
Therefore, the probability is 12.51%
Normal Distribution
Examples:
4. Left of z=1.29 𝑷(𝒛 < 𝟏. 𝟐𝟗)
Normal Distribution
Examples:
4. Left of z=1.29 𝑷(𝒛 < 𝟏. 𝟐𝟗)

From the table, the area between 0 and 1.29 is 0.4015

Normal Distribution
Examples:
4. Left of z=1.29 𝑷(𝒛 < 𝟏. 𝟐𝟗)

From the table, the area between 0 and 1.29 is 0.4015

To get the area to the left of z=1.29, we add it to 0.50
which is the area of half the curve.
0.50 + 0.4015 = 0.9015
Therefore, the probability is 90.15%
Normal Distribution
Examples:
4. Left of z=1.29 𝑷(𝒛 < 𝟏. 𝟐𝟗)

From the table, the area between 0 and 1.29 is 0.4015

To get the area to the left of z=1.29, we add it to 0.50
which is the area of half the curve.
0.50 + 0.4015 = 0.9015
Therefore, the probability is 90.15%
Normal Distribution
Examples:
5. Between of z=0.75 and z=1.85 𝑷(𝟎. 𝟕𝟓 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)
Normal Distribution
Examples:
5. Between of z=0.75 and z=1.85 𝑷(𝟎. 𝟕𝟓 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)

From the table, the area between 0 and 0.75 is 0.2734

From the table, the area between 0 and 1.85 is 0.4678
Normal Distribution
Examples:
5. Between of z=0.75 and z=1.85 𝑷(𝟎. 𝟕𝟓 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)

From the table, the area between 0 and 0.75 is 0.2734

From the table, the area between 0 and 1.85 is 0.4678
To get the area between them, we subtract them
0.4678 - 0.2734 = 0.1944
Therefore, the probability is 19.44%
Normal Distribution
Examples:
5. Between of z=0.75 and z=1.85 𝑷(𝟎. 𝟕𝟓 ≤ 𝒛 ≤ 𝟏. 𝟖𝟓)

From the table, the area between 0 and 0.75 is 0.2734

From the table, the area between 0 and 1.85 is 0.4678
To get the area between them, we subtract them
0.4678 - 0.2734 = 0.1944
Therefore, the probability is 19.44%
Normal Distribution
Examples:
6. Between of z=-0.98 and z=1.02 𝑷(−𝟎. 𝟗𝟖 ≤ 𝒛 ≤ 𝟏. 𝟎𝟐)
Normal Distribution
Application of Normal Distribution:
If a specific problem states that it is normally distributed, we can automatically used the bell curve.
The mean (ഥ 𝒙 𝒐𝒓 𝝁) is at the center. The standard deviation (𝒔 𝒐𝒓 𝝈) is the distance from the mean at
regular intervals.
𝒙−ഥ𝒙 𝒙−𝝁
To get the standard z-score, use the formula: 𝒛 = 𝒐𝒓 𝒛 =
𝒔 𝝈
After getting the z-scores, use the table to get the area of the curve. The area of the curve is the
probability.
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Given:
Mean, xത = 23,000
Standard Deviation, s = 2,500

Required:
Probability that the
employee owes less
than 18,500
P(x<18500)
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Given: Solution:
Mean, xത = 23,000 𝑥 − 𝑥ҧ
Standard Deviation, s = 2,500 𝑧=
𝑠
Required:
Probability that the
employee owes less
than 18,500
P(x<18500)
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Given: Solution:
Mean, xത = 23,000 𝑥 − 𝑥ҧ
Standard Deviation, s = 2,500 𝑧=
𝑠
18500 − 23000
Required: 𝑧=
2500
Probability that the 𝑧 = −1.8
employee owes less
than 18,500 Is it to the left of z?
P(x<18500) Is it to the right of z?
Is it between zero and z?
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Given: Solution:
Mean, xത = 23,000 𝑥 − 𝑥ҧ
Standard Deviation, s = 2,500 𝑧=
𝑠
18500 − 23000
Required: 𝑧=
2500
Probability that the 𝑧 = −1.8
employee owes less
than 18,500 Since the question asks
P(x<18500) the probability that x is
less than 18,500, the
solution should be the
area to the LEFT of z=-1.8
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Given: Solution:
Mean, xത = 23,000 𝑥 − 𝑥ҧ
Standard Deviation, s = 2,500 𝑧=
𝑠
18500 − 23000
Required: 𝑧=
2500
Probability that the 𝑧 = −1.8
employee owes less
than 18,500 Since the question asks
P(x<18500) the probability that x is
less than 18,500, the
solution should be the From the table, the area between zero and
area to the LEFT of z=-1.8 z=-1.8 is 0.4641
Normal Distribution
Example:
1. The average Pag-ibig salary loan for RFS Pharmacy Inc employee is Php 23,000. If the debt is
normally distributed with a standard deviation of Php 2,500. Find the probability that an
employee owes less than Php 18,500.
Given: Solution:
Mean, xത = 23,000 𝑥 − 𝑥ҧ
Standard Deviation, s = 2,500 𝑧=
𝑠
18500 − 23000
Required: 𝑧=
2500
Probability that the 𝑧 = −1.8
employee owes less
than 18,500 Since the question asks
P(x<18500) the probability that x is
less than 18,500, the
solution should be the From the table, the area between zero and
area to the LEFT of z=-1.8 z=-1.8 is 0.4641

Thus, the area to the left of the z-score is

0.5 - 0.4641 = 0.0359

The probability that an employee owes less

than 18500 is 3.59%
Normal Distribution
Example:
2. The average age of bank managers is 40 y/o, assume that the variable is normally distributed. if
the standard deviation is 5 years, find the probability that the age of randomly selected bank
managers will be in the range between 35 and 46 years old.
Normal Distribution
Example:
2. The average age of bank managers is 40 y/o, assume that the variable is normally distributed. if
the standard deviation is 5 years, find the probability that the age of randomly selected bank
managers will be in the range between 35 and 46 years old.
Given:
Mean, xത = 40
Standard Deviation, s = 5

Required:
Probability that the age of a
random employee is in
the range between 35
and 46
P(35<x<46)
Normal Distribution
Example:
2. The average age of bank managers is 40 y/o, assume that the variable is normally distributed. if
the standard deviation is 5 years, find the probability that the age of randomly selected bank
managers will be in the range between 35 and 46 years old.
Given: Solution:
Mean, xത = 40 𝑥 − 𝑥ҧ
Standard Deviation, s = 5 𝑧=
𝑠
35 − 40
Required: 𝑧1 =
5
Probability that the age of a 𝑧1 = −1
random employee is in
the range between 35 46 − 40
𝑧2 =
and 46 5
P(35<x<46) 𝑧2 = 1.2
Normal Distribution
Example:
2. The average age of bank managers is 40 y/o, assume that the variable is normally distributed. if
the standard deviation is 5 years, find the probability that the age of randomly selected bank
managers will be in the range between 35 and 46 years old.
Given: Solution:
Mean, xത = 40 𝑥 − 𝑥ҧ
Standard Deviation, s = 5 𝑧=
𝑠
35 − 40
Required: 𝑧1 =
5
Probability that the age of a 𝑧1 = −1
random employee is in
the range between 35 46 − 40
𝑧2 =
and 46 5
P(35<x<46) 𝑧2 = 1.2

Since the question asks

the probability that x is
between 35 and 46, the
area should be between
z=-1 and z=1.2
Normal Distribution
Example:
2. The average age of bank managers is 40 y/o, assume that the variable is normally distributed. if
the standard deviation is 5 years, find the probability that the age of randomly selected bank
managers will be in the range between 35 and 46 years old.
Given: Solution:
Mean, xത = 40 𝑥 − 𝑥ҧ
Standard Deviation, s = 5 𝑧=
𝑠
35 − 40
Required: 𝑧1 =
5
Probability that the age of a 𝑧1 = −1
random employee is in
the range between 35 46 − 40
𝑧2 =
and 46 5
P(35<x<46) 𝑧2 = 1.2 From the table, the area between zero and z=-1 is
0.3413
Since the question asks From the table, the area between zero and z=-1 is
the probability that x is 0.3849
between 35 and 46, the
area should be between
z=-1 and z=1.2
Normal Distribution
Example:
2. The average age of bank managers is 40 y/o, assume that the variable is normally distributed. if
the standard deviation is 5 years, find the probability that the age of randomly selected bank
managers will be in the range between 35 and 46 years old.
Given: Solution:
Mean, xത = 40 𝑥 − 𝑥ҧ
Standard Deviation, s = 5 𝑧=
𝑠
35 − 40
Required: 𝑧1 =
5
Probability that the age of a 𝑧1 = −1
random employee is in
the range between 35 46 − 40
𝑧2 =
and 46 5
P(35<x<46) 𝑧2 = 1.2 From the table, the area between zero and z=-1 is
0.3413
Since the question asks From the table, the area between zero and z=-1 is
the probability that x is 0.3849
between 35 and 46, the
area should be between Thus, the area in between the two z scores is
z=-1 and z=1.2 0.3413+0.3849 = 0.7262

The probability that an employee owes is in the age

between 35 and 46 is 72.62%
 02
Pearson Product Moment of
Correlation
Pearson Product Moment of Correlation
Data gathered needs to be treated statistically, Pearson Product Moment of Correlation is one of
the things we use to do it.

Correlation Analysis:
Correlation is a statistical method used to determine whether a relationship between variables
exists. A variable here is characteristic of the population being observed or measured.

Types of Relationships:
1. Simple
2. Multiple
Pearson Product Moment of Correlation
Data gathered needs to be treated statistically, Pearson Product Moment of Correlation is one of
the things we use to do it.

Correlation Analysis:
Correlation is a statistical method used to determine whether a relationship between variables
exists. A variable here is characteristic of the population being observed or measured.

Types of Relationships:
1. Simple
2. Multiple

Simple Relationship - in this relationship two variables are present, these are Independent Variables
and Dependent Variables

Independent Variables - are explanatory variables or predictor variables

Dependent variables - are response variables

A simple relationship can be positive or negative.

A positive relationship exists when either variable increases at the same time or both decrease at
the same time.
A negative relationship exists as one variable increases the other variable decreases or vice versa.
Pearson Product Moment of Correlation
Pearson Product-Moment of Correlation or simply correlation (Pearson r)
- It is the most widely used measure in statistics to measure the degree of relationship between
the linear related variables. The Pearson r correlation would require both variables to be
normally distributed. Correlation refers to the departure of two random variables from
independence.

The correlation coefficient is defined as the covariance divided by the standard deviation of the
variables. This is the formula to be used:
𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
2 2
𝑛(σ 𝑥 ) − σ 𝑥 2 𝑛(σ 𝑦 ) − σ 𝑦 2
Pearson Product Moment of Correlation
Pearson Product-Moment of Correlation or simply correlation (Pearson r)
- It is the most widely used measure in statistics to measure the degree of relationship between
the linear related variables. The Pearson r correlation would require both variables to be
normally distributed. Correlation refers to the departure of two random variables from
independence.

The correlation coefficient is defined as the covariance divided by the standard deviation of the
variables. This is the formula to be used:
𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
2 2
𝑛(σ 𝑥 ) − σ 𝑥 2 𝑛(σ 𝑦 ) − σ 𝑦 2

In solving correlation, making a table will help our solutions easier and organized. The table looks
like this:
𝑥 𝑦 𝑥2 𝑦2 𝑥𝑦

… … … … …

… … … … …

σ𝑥 σ𝑦 σ 𝑥2 σ 𝑦2 σ 𝑥𝑦
Pearson Product Moment of Correlation
𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
2 2 2 2
𝑛(σ 𝑥 ) − σ 𝑥 𝑛(σ 𝑦 ) − σ 𝑦

In solving correlation, making a table will help our solutions easier and organized. The table looks
like this:

𝑥 𝑦 𝑥2 𝑦2 𝑥𝑦

… … … … …

… … … … …

σ𝑥 σ𝑦 σ 𝑥2 σ 𝑦2 σ 𝑥𝑦
Pearson Product Moment of Correlation
𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
2 2 2 2
𝑛(σ 𝑥 ) − σ 𝑥 𝑛(σ 𝑦 ) − σ 𝑦

In solving correlation, making a table will help our solutions easier and organized. The table looks
like this:

𝑥 𝑦 𝑥2 𝑦2 𝑥𝑦

… … … … …

… … … … …

σ𝑥 σ𝑦 σ 𝑥2 σ 𝑦2 σ 𝑥𝑦

𝑛𝐸 − 𝐴𝐵
𝑟=
(𝑛𝐶 − 𝐴2 )(𝑛𝐷 − 𝐵2 )
Note that this is only a strategy you can use to memorize the formula.
Relying on the actual formula is still way safer.
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

σ𝐱 = σ𝐲 = σ 𝐱𝟐 = σ 𝐲𝟐 = σ 𝐱𝐲 =
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147

76 143

78 147

84 168

90 206

83 155

93 192
94 211

97 209

85 187

88 200

82 150
σ𝐱 = σ𝐲 = σ 𝐱𝟐 = σ 𝐲𝟐 = σ 𝐱𝐲 =
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147 6,241

76 143 5,776

78 147 6,084

84 168 7,056

90 206 8,100

83 155 6,889

93 192 8,649
94 211 8,836

97 209 9,409

85 187 7,225

88 200 7,744

82 150 6,724
σ𝐱 = σ𝐲 = σ 𝐱𝟐 = σ 𝐲𝟐 = σ 𝐱𝐲 =
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147 6,241 21,609

76 143 5,776 20,449

78 147 6,084 21,609

84 168 7,056 28,224

90 206 8,100 42,436

83 155 6,889 24,025

93 192 8,649 36,864

94 211 8,836 44,521

97 209 9,409 43,681

85 187 7,225 34,969

88 200 7,744 40,000

82 150 6,724 22,500

σ𝐱 = σ𝐲 = σ 𝐱𝟐 = σ 𝐲𝟐 = σ 𝐱𝐲 =
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ𝐱 = σ𝐲 = σ 𝐱𝟐 = σ 𝐲𝟐 = σ 𝐱𝐲 =
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
79 147 6,241 21,609 11,613 2 2 2 2
𝑛(σ 𝑥 ) − σ 𝑥 𝑛(σ 𝑦 ) − σ 𝑦
76 143 5,776 20,449 10,868

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
79 147 6,241 21,609 11,613 2 2 2 2
𝑛(σ 𝑥 ) − σ 𝑥 𝑛(σ 𝑦 ) − σ 𝑦
76 143 5,776 20,449 10,868 12(183,222) − (1029)(2115)
𝑟=
78 147 6,084 21,609 11,466 12(88,733) − 1029 2 12(380,887) − 2115 2

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
79 147 6,241 21,609 11,613 2 2 2 2
𝑛(σ 𝑥 ) − σ 𝑥 𝑛(σ 𝑦 ) − σ 𝑦
76 143 5,776 20,449 10,868 12(183,222) − (1029)(2115)
𝑟=
78 147 6,084 21,609 11,466 12(88,733) − 1029 2 12(380,887) − 2115 2

𝑟 = 0.9270572554
84 168 7,056 28,224 14,112
𝒓 = 𝟎. 𝟗𝟑
90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑟=
79 147 6,241 21,609 11,613 2 2 2 2
𝑛(σ 𝑥 ) − σ 𝑥 𝑛(σ 𝑦 ) − σ 𝑦
76 143 5,776 20,449 10,868 12(183,222) − (1029)(2115)
𝑟=
78 147 6,084 21,609 11,466 12(88,733) − 1029 2 12(380,887) − 2115 2

𝑟 = 0.9270572554
84 168 7,056 28,224 14,112
𝒓 = 𝟎. 𝟗𝟑
90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856 Pearson's Correlation Coefficient is a linear

94 211 8,836 44,521 19,834 correlation coefficient that returns a value of
between -1 and +1. A -1 means there is a
97 209 9,409 43,681 20,273 strong negative correlation and +1 means
85 187 7,225 34,969 15,895 that there is a strong positive correlation.
88 200 7,744 40,000 17,600
A 0 means that there is no correlation (this is
also called zero correlation).
82 150 6,724 22,500 12,300
σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Pearson Product Moment of Correlation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 𝑛𝐸 − 𝐴𝐵
𝑟=
79 147 6,241 21,609 11,613 (𝑛𝐶 − 𝐴2 )(𝑛𝐷 − 𝐵2 )
12(183,222) − (1029)(2115)
76 143 5,776 20,449 10,868 𝑟=
12(88,733) − 1029 2 12(380,887) − 2115 2
78 147 6,084 21,609 11,466 𝑟 = 0.9270572554
84 168 7,056 28,224 14,112 𝒓 = 𝟎. 𝟗𝟑
90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856 Pearson's Correlation Coefficient is a linear

94 211 8,836 44,521 19,834 correlation coefficient that returns a value of
between -1 and +1. A -1 means there is a
97 209 9,409 43,681 20,273 strong negative correlation and +1 means
85 187 7,225 34,969 15,895 that there is a strong positive correlation.
88 200 7,744 40,000 17,600
A 0 means that there is no correlation (this is
also called zero correlation).
82 150 6,724 22,500 12,300
σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
 03
Linear Regression Equation
Linear Regression Equation
SIMPLE LINEAR REGRESSION ANALYSIS

Regression Analysis is a simple statistical tool used to model the dependence of a variable on one
or more explanatory variables. It is the method used to describe the nature of the relationship
between variables, that is, either positive or negative, linear, or nonlinear.

This functional relationship may then be formally stated as an equation, with associated statistical
values that describe how well this equation fits the data.

Simple linear regression is the least estimator of a linear regression model with a single predictor.
The least-square model determines a regression equation by minimizing the sum of squares of
the vertical distances between the actual y values and the predicted values of y. Meaning,
simple linear regression fits a straight line through the set of n points in such a way that makes
the sum of squared residuals of the model as small as possible. This method gives what is
generally known as the "best-fitting" line. The difference between an observed value and the
predicted value is called the residual. The mean of the residual is always zero. The points that
fall outside the overall pattern of the other points are known as outliers.
Linear Regression Equation
Linear Regression Equation
The following are the formulas that we will use for Regression Analysis:

𝑦ො = 𝑏1 𝑥 + 𝑏0

𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑏1 =
𝑛 σ 𝑥2 − σ 𝑥 2

𝑏0 = 𝑦ത − 𝑏1 𝑥ҧ
Where:
𝑦ො = 𝑝𝑟𝑒𝑑𝑖𝑐𝑡𝑒𝑑 𝑜𝑟 𝑓𝑖𝑡𝑡𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑦
𝑥 = 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎𝑛𝑦 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑦 = 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎𝑛𝑦 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑏1 = 𝑠𝑙𝑜𝑝𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑟𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑙𝑖𝑛𝑒
𝑏0 = 𝑦 − 𝑖𝑛𝑡𝑒𝑟𝑐𝑒𝑝𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑟𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑙𝑖𝑛𝑒
𝑥ҧ = 𝑚𝑒𝑎𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑦ത = 𝑚𝑒𝑎𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
Linear Regression Equation
The following are the formulas that we will use for Regression Analysis:

𝑦ො = 𝑏1 𝑥 + 𝑏0

𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)
𝑏1 =
𝑛 σ 𝑥2 − σ 𝑥 2

𝑏0 = 𝑦ത − 𝑏1 𝑥ҧ
Where:
𝑦ො = 𝑝𝑟𝑒𝑑𝑖𝑐𝑡𝑒𝑑 𝑜𝑟 𝑓𝑖𝑡𝑡𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑦
𝑥 = 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎𝑛𝑦 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑦 = 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎𝑛𝑦 𝑝𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑏1 = 𝑠𝑙𝑜𝑝𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑟𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑙𝑖𝑛𝑒
𝑏0 = 𝑦 − 𝑖𝑛𝑡𝑒𝑟𝑐𝑒𝑝𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑟𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑙𝑖𝑛𝑒
𝑥ҧ = 𝑚𝑒𝑎𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑦ത = 𝑚𝑒𝑎𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
Linear Regression Equation
Example:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147

76 143

78 147

84 168

90 206

83 155

93 192
94 211

97 209

85 187

88 200

82 150
σ𝐱 = σ𝐲 = σ 𝐱𝟐 = σ 𝐲𝟐 = σ 𝐱𝐲 =
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲

79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 1: Compute the sum of x, y, x^2, y^2, and xy:

79 147 6,241 21,609 11,613
Based on the completed table:
76 143 5,776 20,449 10,868 σ 𝐱 = 𝟏, 𝟎𝟐𝟗
σ 𝐲 = 𝟐, 𝟏𝟏𝟓
78 147 6,084 21,609 11,466
σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑
84 168 7,056 28,224 14,112 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕
σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 2: Solve for the slope (𝑏1 ) of the simple linear

regression:
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868 𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)

𝑏1 =
78 147 6,084 21,609 11,466 𝑛 σ 𝑥2 − σ 𝑥 2

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 2: Solve for the slope (𝑏1 ) of the simple linear

regression:
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868 𝑛 σ 𝑥𝑦 − (σ 𝑥)(σ 𝑦)

𝑏1 =
78 147 6,084 21,609 11,466 𝑛 σ 𝑥2 − σ 𝑥 2
12 183,222 − (1,029)(2,115)
84 168 7,056 28,224 14,112 𝑏1 =
𝑛 88,733 − 1,029 2
90 206 8,100 42,436 18,560 𝒃𝟏 = 𝟑. 𝟕𝟒𝟗𝟔

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 3: Solve for the variable means 𝑥ҧ and 𝑦:

ത
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 3: Solve for the variable means 𝑥ҧ and 𝑦:

ത
79 147 6,241 21,609 11,613 σ𝑥
𝑥ҧ =
76 143 5,776 20,449 10,868 𝑛
1,029
𝑥ҧ =
78 147 6,084 21,609 11,466 12
ഥ = 𝟖𝟓. 𝟕𝟓
𝒙
84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600 xത = 85.75
82 150 6,724 22,500 12,300
σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 3: Solve for the variable means 𝑥ҧ and 𝑦:

ത
79 147 6,241 21,609 11,613 σ𝑥
𝑥ҧ =
76 143 5,776 20,449 10,868 𝑛
1,029
𝑥ҧ =
78 147 6,084 21,609 11,466 12
ഥ = 𝟖𝟓. 𝟕𝟓
𝒙
84 168 7,056 28,224 14,112
σ𝑦
90 206 8,100 42,436 18,560 𝑦ത =
𝑛
83 155 6,889 24,025 12,865 2,115
𝑦ത =
12
93 192 8,649 36,864 17,856 ഥ = 𝟏𝟕𝟔. 𝟐𝟓
𝒚
94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600 xത = 85.75
82 150 6,724 22,500 12,300 yത = 176.25

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐

Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 4: Solve for the y-intercept of the simple linear

regression (𝑏0 ):
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868 𝑏0 = 𝑦ത − 𝑏1 𝑥ҧ

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600 xത = 85.75
82 150 6,724 22,500 12,300 yത = 176.25

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐

Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 4: Solve for the y-intercept of the simple linear

regression (𝑏0 ):
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868 𝑏0 = 𝑦ത − 𝑏1 𝑥ҧ

𝑏0 = 176.25 − 3.7496 85.75
78 147 6,084 21,609 11,466
𝒃𝟎 = −𝟏𝟒𝟓. 𝟐𝟕𝟖𝟐
84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600 xത = 85.75
82 150 6,724 22,500 12,300 yത = 176.25
b0 = −145.2782
σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 5: Substitute the slope and intercept in the general

simple linear regression equation:
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868 𝑦ො = 𝑏1 𝑥 + 𝑏0

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600 xത = 85.75
82 150 6,724 22,500 12,300 yത = 176.25
b0 = −145.2782
σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 5: Substitute the slope and intercept in the general

simple linear regression equation:
79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868 𝑦ො = 𝑏1 𝑥 + 𝑏0

𝑦ො = (3.7496)𝑥 + (−145.2782)
78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

ෝ = 𝟑. 𝟕𝟒𝟗𝟔𝒙 − 𝟏𝟒𝟓. 𝟐𝟕𝟖𝟐
𝒚
This is the equation for the simple linear equation
90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834

97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

b1 = 3.7496
88 200 7,744 40,000 17,600 xത = 85.75
82 150 6,724 22,500 12,300 yത = 176.25
b0 = −145.2782
σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
Linear Regression Equation
Same Example from Correlation:
The owner of a chain of fruit shake stores would like to find the correlation between atmospheric temperature and sales
during the summer season. A random sample of 12 days is selected with the results given below. Compute for the value
of r.

𝐱 𝐲 𝐱𝟐 𝐲𝟐 𝐱𝐲 Step 6: Graph the least square regression line:

79 147 6,241 21,609 11,613

76 143 5,776 20,449 10,868

78 147 6,084 21,609 11,466

84 168 7,056 28,224 14,112

90 206 8,100 42,436 18,560

83 155 6,889 24,025 12,865

93 192 8,649 36,864 17,856

94 211 8,836 44,521 19,834
ෝ = 𝟑. 𝟕𝟒𝟗𝟔𝒙 − 𝟏𝟒𝟓. 𝟐𝟕𝟖𝟐
𝒚
97 209 9,409 43,681 20,273

85 187 7,225 34,969 15,895

88 200 7,744 40,000 17,600

82 150 6,724 22,500 12,300

σ 𝐱 = 𝟏, 𝟎𝟐𝟗 σ 𝐲 = 𝟐, 𝟏𝟏𝟓 σ 𝐱 𝟐 = 𝟖𝟖, 𝟕𝟑𝟑 σ 𝐲 𝟐 = 𝟑𝟖𝟎, 𝟖𝟖𝟕 σ 𝐱𝐲 = 𝟏𝟖𝟑, 𝟐𝟐𝟐
I hope you learned a lot!
Thank you for listening!
God bless you!