Problem 3:  A researcher is interested in determining whether there is a relationship between grades and hours studied for statistics.   Hours studied(X) Grade on final(Y) 1 20 2 30 4 40 7 60 6 70 7 78 8 83 9 98   1- You are given data for Xi (independent variable) and Yi (dependent variable).      2- Calculate the correlation coefficient, r:             r =           -1 ≤ r ≤ 1     3- Calculate the coefficient of determination: r2 = =                0 ≤ r2 ≤ 1 This is the proportion of the variation in the dependent variable (Yi) explained by the independent variable (Xi)                4- Calculate the regression coefficient b1 (the slope):              b1 = = Note that you have already calculated the numerator and the denominator for parts of r.  Other than a single division operation, no new calculations are required.   5- Calculate the regression coefficient b0 (the Y-intercept, or constant):              b0 =  = 6- The regression equation (a straight line) is:              = b0 + b1Xi       Excel regression analysis     Conclusion:

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Chapter1: Making Economics Decisions
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Topic: Regression 

 

Problem 3:  A researcher is interested in determining whether there is a relationship between grades and hours studied for statistics.

 

Hours studied(X)

Grade on final(Y)

1

20

2

30

4

40

7

60

6

70

7

78

8

83

9

98

 

1- You are given data for Xi (independent variable) and Yi (dependent variable). 

 

 

2- Calculate the correlation coefficient, r:

            r =           -1 ≤ r ≤ 1

 

 

3- Calculate the coefficient of determination: r2 = =               

0 ≤ r2 ≤ 1

This is the proportion of the variation in the dependent variable (Yi) explained by the independent variable (Xi)             

 

4- Calculate the regression coefficient b1 (the slope): 

            b1 = =

Note that you have already calculated the numerator and the denominator for parts of r.  Other than a single division operation, no new calculations are required.

 

5- Calculate the regression coefficient b0 (the Y-intercept, or constant): 

            b0 =  =

6- The regression equation (a straight line) is: 

            = b0 + b1Xi    

 

  1. Excel regression analysis

 

 

Conclusion:

 

 

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