B.COM.

2nd YEAR/ III SEMESTER DATE: 14/12/2020

SUB: BUSINESS STATISTICS UNIT-II PART – 14
TOPIC- Regression Equations
Deviations Taken from Arithmetic Means of X and Y

2. Deviations Taken from Arithmetic Means of X and Y

The previous/above method of finding out regression equation is tedious. The
calculations can very much be simplified if instead of dealing with the actual values
of X and Y we take the deviations of X and Y series from their respective means. In
such a case the two regression equations are written as follows:
(i) Regression Equation of X on Y;
σ
X −X =r x (Y −Y )
σy
X is the mean of X series; Y is the mean of Y series

σx
r is known as the regression coefficient of X on Y.
σy
The regression coefficient of X on Y is denoted by the symbol b xy or b 1. It measures the
change in X corresponding to a unit change in Y. When deviations are taken from the
means of X and Y, the regression coefficient of X on Y is obtained as follows:

σ x ∑ xy
b xy ∨r =
σ y ∑ y2
Instead of finding out the value of correlation coefficient, σ x , σ y, etc. we can find the
value of regression coefficient by calculating ∑ xy and ∑ y2 and dividing the former
by the latter.

(ii) Regression Equation of Y on X;

σy
Y −Y =r ( X− X )
σx
σy
r is the regression coefficient of Y on X.
σx
It is denoted byb yx ∨b 2. It measures the change in Y corresponding to a unit change in
X. When measures are taken from actual means, the regression coefficient of Y on X
can be obtained as follows:
σ ∑ xy
r y=
σ x ∑ x2

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