oni UNIT? B= Regression Reguersion This uso ttatshe technique Pet pm + fot to Pete + € dg me hee RE gave dato Y? Houxly (Os @risSiOnT x 5 Houly pucdohon oteYe = Po? A, TPMT TT BRM, + & £ 1,5, a 8 T Be Bi, Poo: Be axe typically Gitimated by using least = Squares 3 ee ‘ Z C¥5- o> P%-* Pe*t oo °* -9,.%,) rea - z (ype Pity y des fb filled vs Predicted fuom the odljecent groph woe con see ih Yap Ys ot time period 41, tarts é then the fit voluw < bom 9, Ye oat % i ond Yq B the puedicied [Eetoe = O@seeva ion — Paveancnan foeccass | Assomp tons * ©, Pinson Nodel i x @ Face follows oO netmal airtitbohon = Tt ha no outlier — Tt hea no skewed dato — dda is not mon- LineaUmt-3 @ Test for Homoscedashety Contant vardance of He tue Check yor Plot vs § fe Vey is the aiden! go> of te £4 VS Xq predicteal velvet ot predictor yauiobua ‘ - ~ Sprinkied all Ou passer the +a i Poltns do not pas he bert Resicleaf Pattuns obo not pags the detel aeons 2 R® beips us to Know how well out modal te lola. + Tt i @ mepiuse Of vosiob: iby explained by We modal Bose na, Mod > Moda only has dinkucept > The po= ¥ ( Mean of the laperclant vouwosle) value {e euuy uscoard ado > Predict pe = > Sem ‘ Square of cue io arg Lire sooct ~ 20-79) Mode\ with variabla Hodes oe we howe 4 and jotecept 2 - sse = ZO (Som of Sqpous ot) ertols in model gis (58 S87 1 eared 20-1)”Amon se Eons Awova 3 Anolysis °F Vawane Toble hor voles of $$_, SSE ete evaloateal We we mote adjust Re De helps fo Know iy each Variable 10 Anode explainsd the mod ft + Puantoge of vonetey 5 only 49 indapendant vasable ated Bayt , gable yout + yo Ot (rk) R oa} oo F! wig © wetteeUri © &eess orvs o5, mod. a i tan inetudlas oete ham rs egreset variable 1 thou @ predictor of ore =k predicts, the Regress, - mollple tC P mae Aegression model Is pS 9 y= Por Bat put $B te & iy s Aoothe exaenple mode duct big Quads one Aclabookip iL between y ond c ’ y = + pon 2T{ + Bros 2h j, = fo + pom att + pai trr +e, ~ Cress - Secon date . Pu e@the obele - eken date 1s nol hme ovienka ages Mand Assporse vasioble Cy) ore co llectaot 7 about LL at o Apectyre dime Tae ue This hype 24 wa gases ~~ dota it colle ueig —Seehee late “the, amgresttan . mocel xe choss— gechon clate iF written of Ye = po + Pith + Pm tT fori 9 q te ia,3--"9 guia alate is Regress ior Model qe hme Y = fo + ptr +f %t2 4 hig, Vet ee Te wee + Petts ® ey oO Linsar he unknown quarries foo> Pit” * Pr in ' the aagression modal Ot Usually abmolot ving nsthod of least Aquatic:Probiem © Fido Aegression gottow's doto Obs* \ a eto X ‘|: | q oF ors Y= [s] ( 8] sored aspo 1 sib 5 48 oot ® * ga 40st ri 8 3400 11892 so at aa | fen ® A sibel - xx)" xy yxy = “ G 18S 5 (3036) ~ gone) 93198) 7] model and Com compote the parometes fae HeTm Proble er Ev alvode Formulate Ss, 7 SSe = S35, = R Rod} ont 2 2B) Raat, Esha vorone = @: $8;, Ser Se VW yy 97 m4 =_s pxy- oy 5 . Ne Y VYE= PF y SSe ‘S87 y— Sse /(n-r) S87 Jer) / . aq 18+ , $e : 6 ep sy vTel Pepe 1 (only | predidor voutoble ) Stes Eve lwobing SS, wef Sst = so) Gearon Ib yyend [rossa} 2 [ae aa loss3 ~ 3asbas 46SS3—e = tty - Py “paver omre][ “7 (e.| 50 24 4a S [eases . 46 aaa] - ial oae | = af sas625 | sse = YY > Bxy = \sSe_= lea gis Se S37 39924 —<5 oe \@ = o938 10583 — los $8 1246 Rg IT sse [(n-P> ote S8e 5 oe = 581 (0-1) oa =. wal - eufad - a ee act gors [ (2-1) - jel! aoe _ pecnced 1 oe | Beas = nage iK jomr=3) TA ts techotape sed ge io to estimate the Lineos uagantion Aegration + kt {" foe WGiaenr Line E The Aegrestion oS: ie bat a4 etrta whue Sem ag ols ebbaao ss ee eet ort L= 2 be 2 €p+ts +h * yel tn Qsing Choss - Seeker alka , whe eer tern & nd vostance €cer=° dhe model hoa xpected volve vou @) = et ond By ods tae O gue Unvotse lated Aawdom vosteble leost Sqvoru funchon The method Of 9 = ZO Owe om Bite, — Pa 242” “ - = pemtn) 22 (wpe Pe sj) yo feo L @ Y= fot Pinte > é =fuechon 1s Mminimijed the least Sqpou eshmabn, Soy , pe A, ” 3 fo srry ee o) pe Zins ae 7 @ @ @ Be 2 Zo Bs ay Leost S ovee " (ous . with sapet Po, fr, Be ay, 7 fa 2 tet a dae hE pres + K Than spore » pe au “22 (1s- Bo -Z hw) *° Bil = ~a Zi ( Ys-fo -Z Pry )si-° weget_lleast Sqm) he Rye mal eqpanen ot BeBe 2x fe jet ted BEN =e, a 1 “apzt 2 . Eqyetion(win -> Toki matrix qe ae neimal eqprehons te get - y-* ts Ap +e > & Pp bom Bia tt” BE ye Pe] x= Voxgy Hn oo xrk Yo soe a Ti. Bron 2 ooh Fenty he veckot of beat Aquos O Saye Eb = t (y- xp) (1 *P) capris PAPTRY 2 yy apy + Beh exbrate m he leet Aqyes dhe er’ most 20h 3t| 2i-avy + aces) p = ° ap IP > ctr =a 3 oryResponw vauloble est be co mmpoaked n ye Kp Residvel e% = YF n Wu oD @= ‘ =Y-y =Yo xp Cy xp) cy-¥p) sag, SSe = EC S8u) = (n-p)e Th . . ese (ore wa mean Bquoese eu the erhmakot Qo gt * n-P : . is vrbioted eshmote! ot model 4 ECp>

a “The Gyuantities io Ihe benesater and aren ogee nS one Cf liste bub n- @) Ho seje who f > vpperteil Of o with K nomese fe chigneet oy pasectom and o-P denominatet dagrees of eedom + b) Ho @ # s aged ohn P-value jess jo sdosisne fo fran of® Tes 0m Indeidual Regression Couppiciente Wm thse fat aw uryo) in oletermining tHe vatve el Contribs hoo et each precticter vaoble in He eg eso model: Fxample: Medel might be mote eqenve with ince sion 4 addbonal Veuiobiy 64 pehops with fhe dltleon 24 ome ot mote vowels in the model. Hy pe thai {* ferbing the fignicane Ff Yndivicluat Aagressio® tosyiestak FF ve Ho * free Se Hit fT f° # Hy is net Anjeckd deo Pris inclicoter dhat o pi wauiable = aj Con be deleto! the predic spor He jest SHashe model 4 ap the (0 men won is the diagorel Qlerment . Tg Yo the canguenn Corina Er Cowes por VF guragenal dareunt Stack Coo The | fe the. eck 6M ignore foray 8 ely The oR na Coepivenk T andak ont Of Te gre wi ce CP) = VS bo- fi set) ®(own? } > Th u 4 - 2 nll hypothesis Ho V Ap 0 ts Aejectiat y ipe absoloke value of teat stostic lth > 4% ad, 1, . whee te a“ . ayop & PI a petcentage point - Of Ihe -f clssksibubon with pp degree o, - qustor ROB Tobie Aa ” . _ example woud oe Boas | 18 5496 | -498 5 7 Coo «Con - [bs3a -0-0169 ~ Co Cy —0 OF 9 -00096 Po —> Coo ™ ~ pi — Cy ~ ows 0085 ~ 01a X ¥ Pre Sent NS 1@, 2,8, slye gor, 42, 3% a a, te, a) ol ~ Bey 537 24) 306, % Ba, $0% 30S, - < “4, te F 7 SA, 39, $1) a 1s© Tests on Groups oF Coeppiuene Tt betps fo examine the Contibohon Of pusdictet GA group of pueditbes (gimte that othe mi Ct ep) que Indedad in the movie!) te the tigstion tom a Sq The paocadure 1 also Cattsah. extio fom of Sqvour method + consid the quakion with Kk LAR Fase ye xpr & NY is (nei) x is (Mr Pe p \s Cp») > p= K+!I ei cm ) eH | Bubs of the pasdictet vasioble Oy rr7'd Be (4 ek) tonbibote agnpenty £ a jhe | Magasin model” ler sey P [| pb Ca») pass [eran we yar hypothesis Ho > Br =° mo PB Our model Y= x Pre D aL = MP +P +eCCELCECCEEEOECEE A = CArotxty SSg()= plx'y & a 4 ath sy on ol fet = yx SY $506) «Pay SBCA cup 5 =O! wy ss (be) = BY sy Cpa dpe roy peed to fk ortrbenon of we ostume that Hy? By = On hue, then fre redloud model Wr? wr pe y= Yepote Regression Som 4 Aqpeu doe be By, gtr het Pr is alveacly in the mode! SS, (e [psd ~ Se (p) ~ 3% CP) = px’y ~ Ps x2 in phe Atguusion, dum of Aquos a gy We 7 the paroltctat Vorabla a dvo © indod ag jn He model - x S_ also independent Oy volona => bho A Ho * Pie O Va Tat Stash f, + sse( Pps) /a Ae — ~ we aeject Ho , if fo > Fee, 8 yn-p and conclude Hot ot least one of fhe parameter im Pr and at Jeast one op We preckiten ty. not 2e0 fo X, Contmbete Pg nipeont ly yortobka Ws, P20 5 Hg fo teguuion medet .@ conpidene Th tervo_ ow Eralividuel Gagresivon Cocppiceot Gonpictinee Vottived edtmales This neenay fo boild (C4 ) 1” porometuy in Hinson gusto modll» ~ ca We Oddome thot — mole) Crow fer combuch-g and indepnclantly obchnbuted with Ou Neumally dis Oa Voslane = 2. As p.* o Linea Ban fhe : Dbsevehon » «= A ollows that p iS notmodly a disimbotel with mor vectt e and tovariance vw marx V(P) = ot (xXx) Then th Of > . Bi Bi As 04 ty = -| oj . dishiboked a3 t and o-P dagies og ten = is intervol " on = [cay ae Vorone dan sade ves) = 2 Cin bat) Cia« ¢SHockntzect Ussicluel ore Op = OF VU his) fhtnuo oes MSc * v(%)=! i i) jes dtvdentiyeel uriclool fave unit Vouance obsevobion ay Aegouclless of the locabon Of the dataset ‘Uarione Of he Atsidvol tabi Uyes pak + Loge x Kinait otut both Standawelyed Shodan tiyed seriduals que Sientke ag toage het diagonal a Cithe doage yore hii ove indicative Of ynyswel voters = (oti 72> 4 spascose pale Heel serious paoblem * ae ous ioe bdr my nol show ¥P io namoliky plot ber oot be detected with iB hoaeah yeh Aesidvos - ay As DE is the = meaner of dhe locohor OF pre Lib petet cn the precitet youiable , the yore ne of He nesicdvel et depend on pes = Jia, nohich = noieet Oy eelbee yarionce fre point - count thong oe vasianwrabangen he ft A oe@ Press { Purdienon ens ftom oF quae) In ths we delet an obsevahon tay f_and {*t the Atguession mredel fo the tmaiining . bservok 1) ObserveXons and — USe the equokor fo predict on): dedomah is denoted by Yer @ the yy (witha Obsuvohi the paedicua volve 4 ~ Ye —7%es9 gtr obsevetion Aifpus Obsevahoo 1 1M pacdichive ecay > Pees neridval on Laser fH dhe + ssidvel itcouse % Predict dhe # Usd in vows Yad doo ore obleined by 1298 ~n oro woos not om PRESS esi epeohig re puouder® = i= e P Ress state ® uv - Ft - Z (H-Io : i) doso- - Spe Hing ° x is * pees ~~ peers 2 R pactichon press le & SF volve of pecss imply eegressie® pill be new obsevehon - x Srnatt pean use? \ oy¢ C & 1, PRess aesidua) is Cie, ef 1 hii a v Peess = es ; ger ic bat Dos ged inskod PL, a fo got! est Rated ane . Ra Stodank De estienote Ff, 2 is “pgs Sil cau weal we Use oP ahrroty of ow? bard ae gael ole note gt obseavehon usd» with the ne Bkrake ey gee CHM TF eg [J-bit) co) -e7! R- stedint ger by ty Se Bay CE RD @ % * Ay, obsuveror in outlier OF inglventiol theo & we will a Aignigicon lly y°" mse- and Ao dre shodani fea will be mee densitive fo phi + Obse @ & Spawn’ Anidves ty he 42 aisibetion eth n= pet of qeMeaora of Leverage and Tryluence Sometimes we dee imal Subset o4 the dlate ever Oo ditpspeieee co the 4ittol medel - Ie ingloence wnpoutned to Locate those Wplestad = points ond one hat impact 0° dhe model the hot motels He x(xn* is very uae) ie ideohe yi Ganylownttel obsavet on» Vauone ord dhe pusdicted Assponse ond Covorianes of esidual oe Velg = o* gua warceye Hr wae he + bg Ele wm bsp wl a 2 exert by fhe obsavercn ‘ i = dann CH) = vane a) ~P _ werege Bye Of diagonal elecest of yy pookt: Pin — Compo hua P qualita, Cue y” podat 2 fin > high Spresrage phe a b> 28h- * Qrtre ~ locomon of the point and v yesatle ging 4 uiponie po eee Hee ole 19 Meadtuns 7 iepyene - Cook obishance ubed a Mees ‘3g Ure hee o he Aqvanet olstona Aetween the 7 Aeost Aqpares exkmot, Aros on ol 7 gene poi p and: patna oblaivd by. +H bal : CLA fhe EB por sayy Bao: Daers ib prsosuasol a ; _B 1 A 6 p MSe qe lime 2 a B Ary obs: Di>! eu cp nsiclted dp be syrgloen ; . NT OF at yoo) _ Ai eb ag? ae) P j-bst fF vet i Cooks P pape 1 Koo hous exall the regu” model the i obs.o¢ YE yells UF how {7 4h palerVadable Solecton M. Sn Regausion not Pp cecess oly to be oye On use fe (et Atlechag the que Stepwise - HYPE Variable y eagrestions mmethock all post! ble Btepreite = tyre Tecta: Mo In hs eitha adding ot +o ysuotly None Ff the the basic 1 wnisk 0, efroda in Ragrression cL aguste vaudble 0 Hcl into the model net oun gly - st Lommon technique eck bert cdubset AeAgAession Armour a nodal Ot each mba parr mode! Belechoo methods & model fs boilt by predicter vatioble jee Dep - A spy Coun fe -@>und 4B << © forward telechon * TE agin cotth a model Containing fo deqpenkodly one - at Ste CUitrion fhe Cpakon is that 4 - Blasko fo thet — hee predictel youl able jase voiebla vosl + Lapohon ts produced « must be Signipcert: No : ial 3 Th po cous «CONAN and poe Coach pt He incdlel GO votiakl ito variable onkl Hee oe Jemaloing ermaichap pocdictors Hat qwelily enty Adnie He equabon.ND te Geen | Elniroton, (orn) - 7 te his puccioure begin with oul of He % Puedes Vasiabia in the equakoy and th - Vorinbls oe Atmovecl One -ot- 0 fime fo produc . eo inal equobon i => The Ctittion Aumovieg o vasiable 4 ~ Use ally bed on the t- tteHeke, be Voxtable ~ howing the malust $- sbanchic Considaced a Uernovol wat + - J, voulobia are ermoued untill wu of the pasdttt nerratning in The modal Trane tigniiset +f - Btatubio - x For ke pret chet Vado ly , Jom, oe g* possible 4g 4085 00 agpoken fo idanhjy He wits potenhiol to be depo! enage sl pied — Leost Sqwoer * up? ch dheyect fot Shows A Common om °S is non content yariane fre Variance ‘i del egaest ion mo / — a fre obs pot Lonstont bot Changs in : bs. The oblen? Systematic reo with goth oO te ul Tolan Ded pee the plot oF t qe wn vs the ite valoa usidely usa Tronsounatiom Qwian paobursA\ssomplion made Y= xp & Foe) = Vax (2) Ever have Zoro Od @® Eres ae Concemning Lincas Regression mmocle | FE sing OLS are that ° een (onlant! Vadanw , expected velo on ceuelated nemally Olichi bu ed and jndte perctent@ Eros Oe Hermally obsh buted ends shih Gn) Thue Gee Aihabons Phere Gddumphon cur sunue aiorable, Hoare yore we consider modkfoohon hy pe OLS Procedue prhure Eley=0 and Vase (é) - ev sS @M vi os men mobix CLD Aad rotapr tod od— ted v aA astente FRO Known (et atiomped) Btrochuse P fhe vowune and lovatana mon the Landom om the lontteant ge It ha @ \ gues apott Bes Siewple inke pac hahon trot Y is diogorel bet with he unequal cbagorel elaminti Phan fhe Obeewaron of Y - Que ® encouelota bot howe Unreguol Nasonw x Ty dorm oq dhe off- Bayona! clement of Vi Oe ce pon- 240) Ghen fre Obseavohons ave Couelated _ canwalset e uh Ke The Least Sqae fancron : ,O in Le (yep v (y- xp) ad Neamol Equobor or oo \ ; way) fh xNTy x) Be key (XV Pus penatet of the moolel Crenuobiyedt Jeost Aquarer Cord @ pacamees fo is as fees va VO xy LS acl ot ( ¥*Y x) <@ + Vor? bus) =Weighteal lear Square Negblel Lost Aquere op WLS a Sputel Case ©] GES nshae He mn upene Obs. yy elo not hace fhe Same vaonw bet oe Unigueleteat , @ <6 ’ oO ve ey”. oO or 0. o ; e o 4 g ean 275 Since The weigh que Ae uprocal of the Veen Le af thet Obseuvabon - $0, Ney! NLS Giterion 16 L= (Cy-ap)'u(y-*p) WES Aeimal Lquabons ane Gera © 21h Wis aRmabe 14 Buss . (xtwx) x'kyy Wks Covadanu makiux % Pigs ms val Pus) =@8A”wks ) - Loner) Io Yhu method Of estirnakon +he olevioton behvers Observed and are voluee Of Ye 2 molhplied that eee SP crete to the vavionw@ © Ye ‘ Ww by weight i tee ts Le Dot (ee pre) fe i wre LF and ep 1s the vasione & i oi he Bobs of Yee ME , ol — @gurabont aeolting least Squares me a 6 a 8 _ he a 2) +B Bon = 2) eyene Use WLS om J a tho a Beech wie de rohen - Is Ye zy Dn ors method > Outward Opening funnel Shape. — Votiane o obs. % wilh 1 - Oa ol Ass ponse varia le @® ti vs x! Vou ovena op the sportier ob a sn one He pee There Q cas WLS methods widely vised © Estimation © Volonen equehoo i WK do ds Vouonu op a obs: ex me pasclichet 9 mean y ino quadien of ome Notation equohoo by {Plowing process @ Lp tre model Aetoting po the paedices ond pa she obs sesidvol anatysis 1 clarumine ween op ard the phe meen Od Votiobla using OLS ® vse residue pers z relakonships be the pasties vanoble, a ye gome OF os © Regs He quod Olt aasidals on TH appaspriol- pucdictor fo obtain OF aquaoo 6 ’ pacaiteg , Te vouione 04 ~ Soy, Sef or Sy = fo) L @ vx yee vor on fhe aa Kmol - y outane tr fo oblaic aatrols OY He eegne , ie #2 2, n we = Yer x * ~™@) vse the sibrocnst wedgh’ at The dlagonat ; gf the matin Win the ots -— @ 1 fhue is @n Outlia in the dato , Heo we Coulel vse lel ont t oo eqyokon as absolole volat at dhe utideol ove les ayecko by out lian dhen dhe Aquaud Assidval @ Meo Compare couse gid otinale °f rrockel Pawersles Obtained Po wes ee and ols yo x Hey oe nok Aldo “tho sein een oes tredicharbn et OF res ofa ea tote ono recsrighkal weight que A 4 ss obo Cotbd doy aos Aquere Using Replistes of Ness! Neghboss jeg Se ee This pmethod Lau replicate obs” O neoxeeh Bample Valve of the f rey vsBY cod Combinations at lever the pucdicter vou ee c épliot obs. wt { i ° ° with wi wag hls - Lach obs: in o Aeplicate the tame weight Siw it gquoup Would Atctive te me -deies ol 2 15 : ~~ to y~ goer epliat obs M7) dot: Ain ollunanve approach 1s door fe resouat — 2 ws SiS : WY Ddghbe BrP oY obs: (ols cotled psevclosep biota) ond ‘ the Aareple voriane oul oY the obs: ' the giouP ~~ con be computed» The Aecipsocal O4 oreple yortone 4 would be usd oF the weights yer ou obs: jo Hee _\ peat neighbor gt0eP” Bow S plot ord analy Heol used ft hese Teouest = neighbor oproups « sn pretheds on corn be ~w @stornet yore ’ a6 pk ee, erie unknown ond mest be ashmoba - vaC bu) * (gwar, de covestone protik ~ ploy: ude! vole 1° eskrnoking foe hual inpenen® ” (fe,t cE, 2) cinta Lesat Soom EY Used when pacoliter vaxiob le — DLS method | tn he ayenee roll an Oly spaeite of lj i fhene * Pbsolube ceiA veugy gunual mode tan be Wweaillen ar y= fe + Am) + fe see + Pmt é, feta, os <* 7 Paes? tae oC) nC) ys + a, (4) Oe mathe mohol ~ 2 time, “4. 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