The term regression was introduced by the English biometrician, Sir Francis Galton in 1877. He studied the heights of parents and their children and observed an Today, the world regression is used in quite dlifferent sense. It investigates the pendence of one variable on other variables, called independent variables and provides “1 equation to be used for estimating the average value of the dependent variable fom known values of independent variable. For example, u aE want to state the ‘eights of children on the basis of their ages, the height would be the dependent ‘nd the ages would be the independent variable. The values of independent variables are chosen by Gest en a sumed to be fixed, while the values of the dependent variables i, ‘andom, R A . . gression 4 out (Predict) the values of one variable (dependent variable The Process to find out Y iable called Sith th ues of other variable or group of related variable the help of given va sion. “ependent variable is known as regre d regressor th itt ress and an iable is called regressor, predictor, the ‘rence between regi independent variable esta regressand, predictant or je2ession analysis the independent arable Snatory variable where aS Tesponse variable.—— 194 Scatter Diagram A scatter diagram © variables exists. The pair of i c bene “axis for the independent variable and y-axis for the “aon nm paper using the i r By looking to the scatter of the various points on the graph we can fo, ial ay eon variables are related or not. The greater is the scatter of the plotted idee ay acante the relationship between the variables. If a relationship betwee °d points the cnists, then the points in the scatter diagram will show a tendency to es the vatiables straight line or some curve. Such a line or curve around which the points ie around a the regression line. Cluster, is calleg In other words, if we plot the values of the variables A . on a graph . variable along X axis and the other along Y — axis, the result Ph measurin , the resul oe eS One scatter diagram. ting set of points is called g The following scatter diagrams show di . on show different types of relation between the Y 8 10r B.Com . a arty ‘an be used to find whether or not a relationshj f independent - dependent observations as a ¥ dete x (a) No Relationship¢; Regression & Correlation 495 HAP : 107 simple linear oa lotes fase ion is sai i jon i j A seat nda Aine pen te oe nen SIMPLE LINEAR REGRESSION EQUATIONS Following are the two equations of simple linear regression: = Regression line Y on X = Regression line X on Y Regression Line Y on X Equation of regression line Y on X is Y=atbx Where Y — Dependent variable (OR) Regressand X — Independent variable (OR) Regressor b — Regression coefficient (OR) Slope of the line a— Y — intercept at X= 0 PROBLEM — 1 Fit a regression line Y on X from percentages of marks scored by 12 students in Statistics (X) & Economics (Y): xX | 30 34 26 49 60 62 65 SI 44 a2 Te Seo ee em eee OS Solution Equation of regression line Y on X is Y=atbx We have pe BY=BEX gy y. MEXY-EXIEY) ~ n nx? - (2X) MA:oa Business Statistics & Mathematics for B.Com Panty on x Y XY x? sol 30 27 810 900 34 18 612 1156 26 34 884 676 49 28 1372 2401 60 26 1560 3600 62° 30 1860 3844 65 32 2080 4225 51 30 1530 2601 44 28 1232 1936 421 253 11940 21339 p= (11940) - (42190253) 9(21339) - (421)? | > = 0.064 ' 253 - 0.064 a= 23 = 0.064 (421) = oo = 25.1 Hence The fitted regression line Y on X is Y=25.12 +0.064x PROBLEM - 2 Price indices of cotton (X) and Wool (Y) are given below for the 12 months of @ yea" Obtain the equati ion of regression line Y on X between indices: Price index of cotton (X) 78 | 77 85 | 88 | 93 83 | 82 | 78 | 76 | 83 | 97 Price index of Wool (Y) 84.) 80 | 82 | 83 | 88 | 90 | 88 | 91 | 83 | 89 | 78 (B.Com P.U. 19) \ | | | 1 | |regression & Correlation 197 Har S —. $$$ olution x Y xy x 8 84 6552 6084 1 80 6160 5929 85 82 6970 7225 88 83 7304 7144 83 88 7304 6889 83 90 7470 6889 82 88 7216 6724 8 1 7098 6084 76 83. 6308 5776 83 89 7387 6889 97 8 7566 9409 98 96 9408 9604 1008 1032 86743 85246 Equation of regression line Y on X is Y=a+bX We have ~ UXY-nX¥ wm Sa x= =X n xz — 1008 = x 1008 12 > X = 84] ye ZY n x 1032 = =_—— Y = 86] Ww 2 => [Y=86) 2075 ia SS Business Statistics & Mathematic 8 for B.Com Pang | 2(84)(86) Now 12 (84)* = 55 => b=0.09% 574 en a= 86 — 0.096(84) Hence The fitted regression line Y on X is Y=77.936 + 0.096X encasement dd =H 2,0 sas Q.1 Fita regression line Y on X for the following information: (@) n= 6,X=31, EX*= 207, EY = 23, SY?= 111, EX¥ = 150 (i) n= 8, EX = 1002, EX? = 127584, SY = 592, EY? = 45330, EXY = 75842 (iii) n= 11, X= 55.18, 2X? = 48149, ¥ = 55.55, ZY? = 48905, IXY = 48398 (iv) n=7, X=8, EX"=476, Y=8, EY? = 476, EXY = 469 () X=52, ¥=237, 5(X-X)'=2800,(x-X)(y-¥)=9871 Find the regression coefficient for Y on X from the following information n=10, (X-X)'= 170, £(y-¥)'= 140, (x-X)(y¥-¥)=92 If X= 67.68, S. =2.70, Y= 68.65, S,= 2.74 and r= 0.514 then find the regression line Y on X, Q2 Q3 Q4 X= 88.03, 8, = 6.914, ¥— g9, 77, 8,= 8.954 and r= 0.68 then find the regression line Y on X, Regression Line X on Y Equation of regression line X on Y ig X=c+dysion & Correlation 199 p 6: Regres: ou 2 Where X — Dependent variable (OR) Regressand Y— Independent variable (OR) Regressor d- Regression coefficient (OR) Slope of the line c- X~ intercept at Y= 0 PROBLEM - 3 Fita regression line X on Y from percentages of marks scored by 12 students in Statistics (X) & Economics (Y): X | 30 34 26 49 60 62 65 SI 44 Y | 27 18 34 28 26 30 32 30 28 Solution Equation of regression line X on Y is X=et+dy We have - - Y) eu DX-4d ZY and d= DEXY (xyz ) n nLy? - (Ly) x Y XY Y? 30 27 810 n9 34 18 612 324 26 34 884 1156 49 28 1372 784 60 26 1560 676 62 30 1860 900 65 32 2080 1024 SI 30 1530 900 44 28 1232 784 > 421 253 11940 R17 \ | Lp fBusiness Statistics & Mathematics for = (11940) = (421)253) ~ ~"9(7277) - (253) = 107460 -106513 ~ 65493-64009 947 9° Ta84 c= 421 - a (253) aN Hence The fitted regression line X on Y is XK =28.79 + 0.64Y PROBLEM - 4 Price indices of cotton (X) and Wool (¥) are given below for the 12 months of a yea, Obtain the equation of regression line X on Y between indices: Price index of cotton (x) | 78| 77/85) 88 | 83 | 83 | 82 | 78 | 76 | 83 | 97 | 98 ars 84 | 80 | 82 | 83 | 88 | 90 | 88 | 91 | 83 | 89 | 78| 96 (B.Com P.U. 1990) Solution x Y xy y? 78 84 6552 7056 1 80 6160 6400 85 82 6970 6724 88 83 7304 6889 3 88 7304 7744 ie 90 7470 8100 @ 88 7216 7744 ee 91 7098 8281 es e 6308 6889 = eS 7387 7921 98 96 7566 6084 9408 9216 L_1008 | 1032 | g67a3 89048Y=—— > _ 86743 ~ 12(84)(86) Now 39048 — 12 (86)° 55 dr > d 6 a f= 0.184 and 4 — 0.186(86) Hence The fitted regression line Y on X is 68 + 0.186Y Q.1._ Fita regression line X on Y for the following informal @) 1 =9, EX = 785, Px? = 68701, ZY = 1145, LY? = 146675, EXY = 99406 (ii) _ 10, EX = 629, EX? = 39721, ZY = 1139, LY? = 130099, EXY = 71861 (ii) n=11, X= 55.18, 5X? =48149, Y = 55.55, LY? = 48905, IXY = 48398 =8,IX?=476, Y= 8, EY’= 476, EXY = 469 (iv)