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Hopefully it'll be helping others

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SS ION A

RE G RE

INTRODUCTION

The term regression was originally introduced in

statistics by Sir Francis Galton in 1877 in his

research paper ‘Regression towards Mediocrity

in Hereditiary stucture’.

He reached at the conclusion that

short statured sons.

ü The mean height of the sons of a group of tall

fathers was found to be less than that of the

fathers and the mean height of the sons of a

group of short statured fathers was found to

be greater than that of the fathers.

Definition :

Regression is the measure of the average relationship between two or

more variables in terms of original units of data.

Utility :

in those fields where we find the tendency of going

back towards the general average in two of more

correlated series. In the field of economics and business

, regression analysis has more utility. Regression

analysis is used as control tools by management in

their business. This helps in taking decisions in

business.

Regression analysis can be used in other fields also like

estimate can only be had if the series are correlated.

The analysis can also be extended in more than two

series also.

Some functional highlights

It help us to estimate the dependent variables

with the help the independent variables.

using the regression lines as the basis for

estimations.

associations or correlation that exist

between the two variables i.e. dependant

variables and independent variables.

Types of Regression

Regression

Simple Regression Simple Regression

Dependant variable Independent variable

Regression lines

The lines of best fit drawn to show the mutual

known as Regression Lines. For two variables

we have two regression lines, one

representing regression of X on Y and other Y

on X. The line representing regression of X on

Y presumes Y as an independent variable and

X as a dependent variable. The lines gives the

best estimated value of X for the given value

of Y. In the same way, the second line

represents the regression of Y on X.

Functions Of Regression

Lines

I. Best Estimate

Positive Correlation

Negative Correlation

Perfect Correlation

Absence of Correlation

Limited Correlation

Regression Equations

Regression Equations are algebraic form of

estimating equations. As there are two

regression lines, we have two regression

equations.

describe variation in the value of X for the

given changes in Y.

describe variation in the value of Y for the

given changes in X.

Regression Equation Of X on Y

The regression equation X on Y is written in the

form of X= a+bY.

From this equation we can have the best

estimate of X for the given value of Y. In this

way from the estimated values of X and

known values of Y, we draw a line which is

known as regression line X on Y.

To determine the values of a and b the

following two normal equations are to be

solved simultaneously.

∑X = Na +b∑Y

∑XY =a ∑Y +b∑Y 2

Regression Equation of Y on X

The regression equation of Y on X is written in

the form of Y= a+bX.

From this equation we can have the best

estimate of Y for the given value of X. In this

way from the estimated values of Y and known

values of X, we draw a line which is known as

regression line Y on X

To determine the values of a and b the

following two normal equations are to be

solved simultaneously.

∑Y =Na +b∑X

∑XY =a ∑X +b∑X 2

Example

Calculate the regression equations of X on Y

X 2 3 4 5 6

Y 3 4 5 6 7

X Y Y2 XY XY

2 3 4 9 6

3 4 9 16 12

4 5 16 25 20

5 6 25 36 30

6 7 36 49 42

∑ X = 20 ∑ Y = 25 ∑X 2

= 86 ∑Y 2

= 135 ∑ XY = 135

Calculations Based Of Arithmetic

Mean

gression equation of X on Y : Regression Equation of Yon X :

σX σy

( X − X ) =r (Y −Y ) (Y −Y ) =r

σx

( X −X )

σy σ

r X

= is called Regression coefficient of Y

X =

denotes the actual mean of σy

Xseries and Its value is in the same

= denotes the actual mean of

Y ∑ xy

Yseries and ∑ x2

manner as proved in case of the regression equation X

coefficient of correlation between X and Y series.

= standard deviation of X series

σx

= standard deviation of Y series

σy

bXY =r

σx

=

∑ XY σ

× x =

∑ xy

σy nσx ×nσy σy nσ2

y

=

∑ xy

=

∑xy

n×∑ y2 ∑y2

n

Example

X 3 5 7 9 11

Y 6 7 9 8 10

Solution :

X (X − X ) 2 Y (Y − Y ) Xy

( x) Y ( y) Y2

3 -4 16 6 -2 4 +8

5 -2 4 7 -1 1 +2

7 0 0 9 +1 1 0

9 +2 4 8 0 0 0

11 +4 16 10 +2 4 +8

∑ X = 35 ∑ x = 0 ∑x 2

= 40 ∑Y =40

Mean=8

∑y=0 ∑y 2

= 10 ∑ xy= 18

Mean=7

Regression equation of X on Y : Regression equation of Y on X :

σx σy

( X − X ) = r (Y − Y ) (Y − Y ) = r (X − X )

σy σx

or, ( X − X ) =

∑ xy

(Y − Y ) or , (Y − Y ) =

∑ xy

(X − X )

∑y 2

∑x 2

18 18

X − 6 = (Y − 8) Y −8 = ( X − 6)

10 40

⇒ X − 6 = 1.8(Y − 8) ⇒ Y − 8 = 0.45( X − 6)

⇒ X = 1.8Y − 8.4 ⇒ Y − 8 = 0.45 X − 2.70

Y = 0.45 X + 2.70

Calcualtions Based of Assumed Mean

Regression equation of Y on X :

N∑ xy −∑∑x y

b yx = ( X −X )

N∑ y −( ∑

2 2

x )

Regression equation of X on Y :

N∑ xy −∑∑x y

bxy = (Y −Y)

N∑ y −( ∑

2

y) 2

Example

Height of the 62 64 66 67 68 68 69 71 72 73

fathers in inches

in inches

Solution :

X ( X - 65 )= x Column1 Y ( Y - 65 )= y Column6 xy

62 -3 9 63 -2 4 6

64 -1 1 62 -3 9 3

66 1 1 65 0 0 0

67 2 4 67 2 4 4

68 3 9 67 2 4 6

68 3 9 70 5 25 15

69 4 16 70 5 25 20

71 6 36 67 2 4 12

72 7 49 68 3 9 21

73 8 64 71 6 36 48

X =A +

∑x

==

65 65 ++

30

3=68

N 10

Y =A +

∑ y

=65 +2 =67

N

Regression equation of X on Y: Regression equation of Y on X:

σx σ

(X −X ) =r (Y −Y )

y

(Y −Y) =r (X −X)

σy σx

N ∑ xy −∑ x ∑ y N ∑xy −∑x ∑y

bxy = (Y − Y ) byx = ( X −X )

N ∑ y − (∑ y )

2 2 N ∑y −(∑x )

2 2

30 * 20 30 * 20

135 − ( ) 135 − ( )

( X − 68) = 10 (Y − 67) (Y − 67) = 10 ( X − 68)

(20) 2

(30) 2

120 − 198 −

10 10

75 75

( X − 68) = (Y − 67) (Y − 67) = ( X − 68)

80 108

X = 68 − 62.8 + 0.94Y Y = 67 − 47.6 + 0.7 X

∴ X = 5.2 + .94Y ∴Y = 19.4 + 0.7 X

Regression Equations in Grouped

Frequency Distribution

Regression Equations of X on Y:

(Y −Y) =b yx ( X −X)

(∑ ∑

fx * fy )

∑fxy −

N iy

(Y −Y) = * (X −X)

fx 2 − ∑

2

( fx ) i

∑ N

x

Regression Equations of Y on X :

(Y −Y ) =b yx ( X −X )

∑fxy −(

∑fx * ∑fy )

N iy

(Y −Y ) = * ( X −X )

(∑fx 2 ) ix

∑fx 2

−

N

Example

Height in inches Weight in lbs.

50-55 2 10 8 - 20

55-60 4 15 5 1 25

60-65 2 10 15 8 35

65-70 2 5 2 11 20

Total 10 40 30 11 100

X =A +

∑fx

*i Y =A +

∑fy

*i

N N

−45 * 5 60

X =62 .5 + Y =95 + *10

100 100

X =60 .25

Y =101

Regression Equation of X on Y: Regression Equation of Y on X:

X − X = bxy (Y − Y ) Y = a + bX

(Y −101) = 0.649 X − 0.649 * 60 .25

X = 60.25 − 20.402 + 0.202Y

Y = 101 − 39 .102 + 0.649 X

∴ X = 39.848 + 0.202Y

∴Y = 61 .898 + 0.649 X

Regression Coefficients

Regression Coefficients of X on Y :

σx ∑

xy

bxy =r b yx =

σy ∑

2

y

∑ xy − ( ∑ x*∑ y

)

bxy = N or

∑ xy * N − (∑ xy )

∑ y2 − N

( ∑ y ) 2

∑ y 2

* N − ( ∑ y ) 2

∑ x*∑ y

∑ xy − ( N ) ix

bxy = *

(∑ y ) 2

iy

∑ y 2

−

N

Regression Coefficients of Y on X :

σy ∑xy

bxy =r b yx =

σx ∑x 2

∑ xy − ( ∑ x*∑ y

)

byx = N or

∑ xy * N − (∑ xy )

∑ x2 − N

( ∑ x ) 2

∑ x 2

* N − ( ∑ y ) 2

∑ x*∑ y

∑ xy − ( N ) i y

bxy = *

(∑ x ) 2

ix

∑ x 2

−

N

Example :

Find the regression coefficients :

X 1 2 3 4 5

Y 2 5 3 8 7

Solution :

X x=(X-2) x 2 Y y=(Y-4) y2 xy

1 -1 1 2 -2 4 2

2 0 0 5 +1 1 0

3 +1 1 3 -1 1 -1

4 +2 4 8 +4 16 8

5 +3 9 7 +3 9 9

+5 15 +5 31 18

Means of X and Y :

∑ x 5 Y = A+

∑ y 5

= 4 + = 4 +1 = 5

X = A+ = 2+ = 2+1= 3

N 5 N 5

Regression Coefficients of X on Y :

∑xy −( ∑x * ∑y ) 18 −(

5*5

)

N 5 13

byx = = = = 0 .5

(∑y ) 2 (5) 2 26

∑y − N

2

31 −

5

∴bxy = +0.5

Regression Coefficients of Y on X :

∑ xy − ( ∑ x * ∑y

) 18 − (

5*5

)

N 5 13

byx = = = =1.3

(∑x ) 2

(5) 2

10

∑ x 2

−

N

15 −

5

∴bxy = +1.3

Yo u

an k

T h

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