REGRESSION ANALYSIS AND CHI-

SQUARE TEST
B Y G R O U P 0 2

Members:
• Fonte, Terivin
• Franco, Angel
• Genciana, Shacel Angela
• Gultian, Coleene
• Hernandez, Ashley Nicole
• Ladjaasmad, Radzma
• Lewis, Shani
• Lim, Patricia Paula
• Mangarin, Kate Paulene
• Martinez, Mark anthony
Ma’am Mary Ann Lopez
REGRESSION
ANALYSIS
G R O U P 0 2
 DEFINITION

• Regression analysis is a set of statistical processes for estimating the relationships

among variables. It includes many techniques for modeling and analyzing several
variables when the focus is on the relationship between a dependent variable and
one or more independent variables.
 APPLICATIONS OF REGRESSION ANALYSIS IN RESEARCH

• Economics
⚬ Studying the relationship between variables like income and spending.

• Medicine
⚬ Predicting the impact of a drug dosage on patient outcomes.

• Marketing
⚬ Analyzing the effect of advertising expenditure on sales.

• Social Sciences
⚬ Understanding factors influencing voting behavior.

• Engineering
⚬ Predicting the strength of materials based on various parameters.
 TYPES OF REGRESSION

• Simple Linear Regression

⚬ Looks at one variable's impact on another. Involves one dependent variable and one
independent variable. It assumes a linear relationship between the variables.

⚬ The dependent variable must be a continuous/real value. However, the independent

variable can be measured on continuous or categorical values

⚬ The relationship between the independent and dependent variable is linear which is the
line of best fit through the data points is a straight line.
 SIMPLE LINEAR REGRESSION

• You can use simple regression line when you want to know:
a. How strong the relationship is between two variables.
b. The value of the dependent variable at a certain value of the
independent variable

• The Simple regression model can be represented by using the formula:

Y = β₀ + β₁X + ϵ
EXAMPLE
 TYPES OF REGRESSION

• Multiple Linear Regression

⚬ It includes two or more independent variables.

⚬ It predicts the value of the dependent variable based on the values of the independent
variables.

Goal:
⚬ The goal is to to predict the outcome of a dependent variable.

Why to use multiple linear regression?

⚬ It allows us to understand how multiple factors influence an outcome, make predictions based
on historical data, and provides insights into which independent variables are significant
predictors of the dependent variable.
 MULTIPLE LINEAR REGRESSION

• Dependent Variable - the outcome variable we want to predict or understand.

• Independent Variables - the variables that we believe influence the dependent variable.

• Coefficients - numbers that represent the strength and direction of the relationship
between independent and dependent variables.

• Intercept - the value of the dependent variable when all independent variables are zero.
EXAMPLE
 CHALLENGES AND CONSIDERATIONS

• Assumption Violations
⚬ Regression analysis relies on several assumptions, such as linearity, independence of errors, and
homoscedasticity, which may not always hold true.

• Multicollinearity
⚬ When independent variables are highly correlated, it can lead to unstable estimates of regression
coefficients.
 CHALLENGES AND CONSIDERATIONS

• Overfitting
⚬ Including too many predictors in the model can result in overfitting, where the model performs
well on the training data but poorly on new data.

• Interpretation
⚬ Interpreting regression coefficients requires caution, as correlation does not imply causation.
CHI-SQUARE TEST
G R O U P 0 2
 DEFINITION

• Chi-square analysis is a statistical technique used to determine whether there is a

significant association between two categorical variables. It compares the observed
frequencies of categorical data with the frequencies that would be expected under a
null hypothesis of no association.

TYPES OF CHI-SQUARE TEST

• Chi-Square Test of Independence

• Chi-Square Goodness of Fit Test

 TYPES OF CHI-SQUARE TEST

• Chi-Square Test of Independence

⚬ This test examines whether there is a relationship between two categorical

variables. It assesses whether the observed frequencies of the categories in
one variable are independent of the categories in the other variable. The null
hypothesis assumes that there is no association between the variables.
 EXAMPLE

• A ramen store wishes to determine whether there is a diffrence in the level of spiciness
selected by males & females for their ramen. A random samples provides the data given
below. At a = 0.05, test the claim that the level of spiciness selected is dependent of the
gender of individual

H0: the spiciness level selected by an individual is independent of the gender of the
individual.

H1: the spiciness level selected by an individual is dependent of the gender of the individual.
(claim)
EXAMPLE
EXAMPLE
 EXAMPLE

DECISION & CONCLUSION: Since the chi-square value of 2.03 is less than the
critical chi-square value of 5.991, then the null hypothesis is not rejected. Meaning,
there is not enough evidence to support the claim that the spiciness level selected by
an individual is dependent of the gender of the individual
 TYPES OF CHI-SQUARE TESTS

• Chi-Square Goodness of Fit Test

⚬ This test compares the observed frequencies of a categorical variable

with the frequencies that would be expected under a specific
distribution. It is used to determine whether the observed data fits a
theoretical or expected distribution.
 EXAMPLE

• Imagine you're a pet store owner stocking different flavors of cat food. You want to know
if cats have a preference for one flavor over others. By conducting a chi-square goodness
of fit test, you can analyze whether the distribution of cat food purchases matches what
you'd expect if cats had no preference. This helps you decide which flavors to prioritize
stocking based on cats' preferences.

Null Hypothesis (H0): There is no significant difference in preference for different flavors of
cat food.

Alternative Hypothesis (H1): There is a significant difference in preference for different

flavors of cat food.
FORMULA
CHI-SQUARE DISTRIBUTION TABLE
 CHALLENGES AND CONSIDERATIONS

• Sample Size
⚬ Chi-square tests may not be valid if sample sizes are too small.

• Assumptions
⚬ It assumes that the observations are independent and that the expected
frequencies are not too small.

• Interpretation
⚬ A significant result only indicates that there is an association, not the strength or
direction of the relationship.
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