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Unit 13: Coefficient of Simple Regression Method


            Solution:                                                                                Notes
                                    Calculation of Regression Equations

                 X         (X – 6)               Y         (Y – 8)
                             x         x 2                   y          y 2         xy
                 6            0        0          9         +  1         1           0
                 2          – 4       16         11         + 3          9         – 12
                10          + 4       16          5          – 3         9         – 12
                 4          –  2       4          8           0          0           0
                 8          + 2        4          7          – 1         1          – 2

                                       2
                                                                        2
              ∑ X  = 30   ∑ x  = 0  ∑ x = 40   ∑ Y  = 40  ∑ y  = 0   ∑ y  = 20  ∑ xy  = – 26
            Regression Equation of X on Y

                                                    σ
                                            X – X  =  r  σ y x  (  ) Y – Y


                                                   30         40     σ x   ∑ xy  –26
                                               X =     = 6,  Y  =    = 8,  r   =    =    = – 1.3
                                                    5         5      σ y   ∑ y 2  20
                                             X – 6 = – 1.3 (Y – 8)
                                             X – 6 = – 1.3 Y + 10.4 or X = 16.4 – 1.3 Y
            Regression Equation of Y on X

                                                    σ y
                                            Y – Y =  r  (   ) X – X
                                                    σx

                                              σ    ∑ xy   – 26
                                             r  y  =     =     =  – 0.65
                                              σx   ∑ x 2   40
                                             Y – 8 = – 0.65 (X – 6)
                                             Y – 8 = – 0.65 X + 3.9
                                               Y = 11.9 – 0.65 X.
            Deviations taken from Assumed Means

            When actual means of X and Y variables are in fractions, the calculations can be simplified by taking
            the deviations from the assumed mean. The value of b, i.e., the regression coefficient, will be calculated
            as follows:
            Regression Equation of X and Y


                                            X – X =  b xy ( Y – Y )

                                                   N  Σ dd  –  ( xy  )Σ  ( d  d  ) Σ
                                             σ xy =            x    y
                                                      N   y 2  – ( Σ  d y ) Σ d  2




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