Presented by: Himanshu Kaushik Kunal Khurana

Definition  The statistical tool with the help of which we are in a position to estimate (or predict) the unknown values of one variable from known values of another variable is called regression.  It establish the nature of the relationship between variables and thereby provide a mechanism for prediction. . or forecasting.

sales. profits etc.Uses Regression Analysis as a statistical tool has a no. consumption . of uses:  It is a formidable tool of statistical analysis in the field of business and commerce where people are interested in predicting the future events such as production . .prices .

. the regression analysis technique gives us an idea about the relative variation of a series. tax rate etc. This technique is highly used in our day to day life and sociological studies as well to estimate the various factors such as birth rate .  Last but not the least . death rate .

Least Square Method The regression equation of X on Y is : Where. Y=Dependent variable X=Independent variable Y = a+bX And the values of a and b in the above equations are found by the method of least of Squares-reference . The values of a and b are found with the help of normal equations given below: (I ) (II ) Y  na  b X    X  na  b Y XY  a  Y  b Y 2   XY  a X  b X 2 . X=Dependent variable Y=Independent variable X= a+bY The regression equation of Y on X is: Where.

Example 1: From the following data obtain the two regression equations X Y Solution: X 3 2 7 4 8 3 6 Y 6 1 8 5 9 2 1 XY 18 2 56 20 72 7 8 X2 9 4 49 16 64 4 5 Y2 36 1 64 25 81 8 9  X  24 Y  29  XY 168  X 2  142 Y 2  207 .

(ii) Multiplying equation (i ) by 12 and (ii) by 5 348=60a+288b………………(iii) 420=60a+355b………………(iv) By solving equation(iii)and (iv) we get a=0.Y  na  b X  XY  a X  b X 2 Substitution the values from the table we get 29=5a+24b…………………(i) 168=24a+142b 84=12a+71b……………….66 and b=1..07 .

66+1.07X Now to find the regression equation of X on Y .(ii) .. The two normal equation are  X  na  b Y XY  a  Y  b Y 2  Substituting the values in the equations we get 24=5a+29b………………………(i) 168=29a+207b………………….By putting the value of a and b in the Regression equation Y on X we get Y=0.

49 and b=0.74Y .Multiplying equation (i)by 29 and in (ii) by 5 we get a=0.49+0.74 Substituting values of a and b in the regression equation of X and Y X=0.

The formula for the calculation of Regression Equations by this method: Regression Equation of X on YRegression Equation of Y on X- ( X  X )  bxy (Y  Y ) (Y  Y )  byx ( X  X ) Where. So the work can be simplified by using this method. bx y and b y x = Regression coefficient bx y   xy y 2 and byx  xy  x 2 .Deviation from the Arithmetic mean method: The calculation by the least squares method are quit cumbersome when the values of X and Y are large.

8 3.04 4.8 2.24 xy -0.64 10. X Y Solution: X 3 2 7 4 8 Y 6 1 8 5 9 3 6 2 1 7 8 4 5 8 9 x  X  X y  Y Y -1.2 0.2 -0.24 7.64 10.84 0.04 23.84 4.8 -2.44 4.2 -0.8 2.24  X  24 Y  29  x  0  y 0  x  26.8 .36 13.2 x2 3.8   xy  28.2 -4.84 0.64 10.84 0.8 2 y 2  38.Example 2: from the previous data obtain the regression equations by Taking deviations from the actual means of X and Y series.8 3.24 y2 0.

8 Y  5.8  1.8 X  4.8) Y  1.74Y  0.8 X  0.66 ………….(I) Regression Equation of Y on X is : (Y  Y )  byx ( X  X ) byx  xy  x 2 28.8  38.07( X  4.8  0.49 ………….Regression Equation of X on Y is : ( X  X )  bxy (Y  Y ) bxy  xy  y 2 28.8 X  4 .8  26.(II) Y  5 .8 Y  5.8  .07 X  0.74Y  5.8  X  4 .

The Regression Equation of X on Y ( X  X )  bxy (Y  Y ) The Regression Equation of Y on X (Y  Y )  byx ( X  X ) But . here the values of following formula: and bx y b y xwill be calculated by bxy  N  dxd y   dx  d y Nd  d y 2 y   2 byx  N  dxd y   dx  d y Nd  2 x  d  x 2 .the calculations can be simplified by taking the deviations from the assumed mean.Deviation from Assumed mean method: When actual mean of X and Y variables are in fractions .

From assu. Mean 6 (dy)=Y-6 0 -5 2 X Y 2 dx 2 dy dxdy 0 +25 0 3 2 7 6 1 8 16 25 0 0 25 4 4 8 5 9 -3 1 9 1 -1 3  51 1 9 +3 +3  X  24 Y  29 d x  11 d 2 x d y  1 d 2 y  39 d d x y  31 . Solution: Dev.Example-: From the data given in previous example calculate regression equations by assuming 7 as the mean of X series and 6 as the mean of Y series. From assu. Mean 7 (dx)=X-7 -4 -5 0 Dev.

8) X  0.8)  0.74 The Regression equation of X on Y: ( X  X )  bxy (Y  Y ) ( X  4. X  X  24  4.49 .74Y  0.8 Y N 5 bxy  bxy bxy bxy bxy N  dxd y   dx  d y Nd  2 y  d  y 2 5(31)  ( 11)(1)  5(39)  (1) 2 155  11  195  1 144  194  0.8 X N 5 The Regression Coefficient of X on Y:  Y  Y  29  5.74(Y  5.

07( X  4.8) Y  1.8)  1.The Regression coefficient of Y on X: byx  N  dxd y   dx  d y 2 N  dx   d  x 2 byx byx byx byx The Regression Equation of Y on X: 5(31)  (11)(1)  5(51)  (11) 2 155  11  255  121 144  134  1.66 .07 (Y  Y )  byx ( X  X ) (Y  5.07 X  0.

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