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Stat 1301 The Regression Line

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Used Car Data. Price AVG = 11,290 SD = 6044. Age AVG = 6 yrs SD = 3 yrs r = -.82 ... predicting Price from Age. 2. Predict Price if car is (a) 3 years old (b) ... – PowerPoint PPT presentation

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Title: Stat 1301 The Regression Line


1
Stat 1301The Regression Line
2
Recall SD Line --
  • goes through point of averages
  • passes through heart of elliptical shaped cloud

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  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
Age in years (X)
6
  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
SD Line
Age in years (X)
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The Regression Line
  • A smoothed graph of averages
  • Used to predict Y (the dependent variable) from
    knowing X (the independent variable)

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The Regression Line(continued)
  • Passes through the point of averages (AVGx,
    AVGy) r SDy
  • Has slope m
  • SDx
  • i.e. a change of 1SDx for independent
    variable is associated with r SDy change in
    dependent variable

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SD Line
Regression Line
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  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
Age in years (X)
15
  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
Regression Line
Age in years (X)
16
  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
SD Line
Age in years (X)
17
  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
Age in years (X)
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  • NOTE The regression line has smaller slope than
    SD line
  • i.e regression line is not as steep

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Easier Way to Predict - Use Regression
Line(Chapter 12)
  • Equation
  • y mx b m slope
  • b y-intercept
  • where
  • rSDy m SDx b
    AVGy - mAVGx

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Predicting Y whenyou know X
  • Put value for X into regression equation and
    solve for Y

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What height would you predict for a son whose
father is (a) 72 tall (b) 64 tall (c)
68 tall
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  • Used Car data
  • AVGx 6.4 SDx 3 (Age)
  • AVGy 11,290 SDy 6,044 (Price)
  • r - 0.82

Selling price (Y)
Regression Line
Age in years (X)
26
Used Car Data
Price AVG 11,290 SD 6044 Age AVG 6
yrs SD 3 yrs r -.82
1. Find the equation of the regression line for
predicting Price from Age
2. Predict Price if car is (a) 3 years old
(b) 10 years old
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