QuestionQuestion

1. What is the purpose of Linear Regression? How does it differ from basic correlation? When is it appropriate for use? Describe a study for which you would use Linear Regression for statistical analysis.

For questions 2-7, use the following data. You may use SPSS to complete all parts of this assignment.
(X, Y, X2, Y2, XY)

2.2 3.4 4.84 11.56 7.48
1.7 2.6 2.89 6.76 4.42
2.7 3.7 7.29 13.69 9.99
3.1 3.8 9.61 14.44 11.78
2.5 4.3 6.25 18.49 10.75
3.1 2.9 9.61 8.41 8.99
1.9 3.2 3.61 10.24 6.08
2.1 2.0 4.41 4.0 4.2
2.6 3.4 6.76 11.56 8.84
2.4 3.1 5.76 9.61 7.44
24.3 32.4 61.03 108.76 79.97

2. Create a scatterplot of X and Y using SPSS and copy into your assignment. What does the scatterplot tell you visually about the relationship between X & Y?

3. Calculate the slope (b) of the regression line.

4. Calculate the Y intercept (a) of the regression line.

5. Write out the regression equation (Y’= bX + a)

6. Is X a significant predictor of Y?

7. Using the calculated regression equation from question calculate Y' for the following values of X.
3.4
12.2

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1. What is the purpose of Linear Regression? How does it differ from basic correlation? When is it appropriate for use? Describe a study for which you would use Linear Regression for statistical analysis.

Linear regression is used to predict one response (dependent) variable on the basis of one predictor (independent) variable. Correlation tells whether or not there is a relationship between two variables however like regression it does not predict one variable by using the other variable. It is appropriate to use linear regression in such cases when there is a need of the prediction of the response based on some explanatory variables.

Suppose a motor vehicle company wants to predict the profit in the proceeding year based on few explanatory variables such as sales, year, number of showrooms, number of motor vehicle produced etc. in such cases we are going to use linear regression....

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