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A researcher is interested in determining whether there is arelationship between the number of packs of cigarettes smoked perday and longevity (in years). n=10.
A researcher is interested in determining whether there is arelationship between advertising and sales for her firm.
advertising in $thousands(X)
Sales in millions(Y)
1
0
1
1
6
8
4
5
5
5
6
7
6
8
6
7
7
8
10
11
1- You are given data for Xi (independentvariable) and Yi (dependentvariable).
2- Calculate the correlation coefficient, r:
r= -1≤ r ≤ 1
3- Calculate the coefficient ofdetermination: r2 = =
0 ≤ r2 ≤ 1
This is the proportion of the variation in the dependentvariable (Yi) explained by the independent variable(Xi)
4- Calculate the regressioncoefficient b1 (theslope):
b1 = =
Note that you have already calculated the numerator and thedenominator for parts of r. Other than a single divisionoperation, no new calculations are required.
5- Calculate the regression coefficient b0 (theY-intercept, or constant):
b0 = =
6- The regression equation (a straight line) is:
=b0 +b1Xi
B. Excel regression analysis
Conclusion: