Compute The Least-squares Regression Equation For Predicting $y$ From $x$ Given The Following Summary Statistics:- Mean Of $x = \bar{x} = 8.1$- Mean Of $y = \bar{y} = 30.4$- Standard Deviation Of $x = S_x =

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**Compute the Least-Squares Regression Equation for Predicting y from x**

What is Least-Squares Regression?

Least-squares regression is a statistical method used to model the relationship between two variables, x and y, by minimizing the sum of the squared errors between observed and predicted values. It is a widely used technique in data analysis and prediction.

How to Compute the Least-Squares Regression Equation?

To compute the least-squares regression equation, we need to follow these steps:

Step 1: Calculate the Coefficient of Determination (R^2)

The coefficient of determination, R^2, measures the proportion of the variance in the dependent variable (y) that is predictable from the independent variable (x). It is calculated as:

R^2 = 1 - (S_y^2 / (n * (S_y^2 - (S_xy)^2 / n)))

where S_y^2 is the variance of y, n is the number of observations, and S_xy is the covariance between x and y.

Step 2: Calculate the Slope (b) of the Regression Line

The slope of the regression line, b, is calculated as:

b = S_xy / S_x^2

where S_xy is the covariance between x and y, and S_x^2 is the variance of x.

Step 3: Calculate the Intercept (a) of the Regression Line

The intercept of the regression line, a, is calculated as:

a = \bar{y} - b * \bar{x}

where \bar{y} is the mean of y, b is the slope of the regression line, and \bar{x} is the mean of x.

Step 4: Write the Least-Squares Regression Equation

The least-squares regression equation is written as:

y = a + b * x

where a is the intercept, b is the slope, and x is the independent variable.

Example:

Suppose we have the following summary statistics:

  • Mean of x = \bar{x} = 8.1
  • Mean of y = \bar{y} = 30.4
  • Standard deviation of x = S_x = 2.5
  • Standard deviation of y = S_y = 10.2
  • Covariance between x and y = S_xy = 25.6

We can calculate the coefficient of determination (R^2) as:

R^2 = 1 - (S_y^2 / (n * (S_y^2 - (S_xy)^2 / n))) = 1 - (10.2^2 / (10 * (10.2^2 - (25.6)^2 / 10))) = 0.85

We can calculate the slope (b) of the regression line as:

b = S_xy / S_x^2 = 25.6 / (2.5^2) = 4.16

We can calculate the intercept (a) of the regression line as:

a = \bar{y} - b * \bar{x} = 30.4 - 4.16 * 8.1 = 6.35

Therefore, the least-squares regression equation is:

y = 6.35 + 4.16 * x

Q&A

Q: What is the purpose of least-squares regression?

A: The purpose of least-squares regression is to model the relationship between two variables, x and y, by minimizing the sum of the squared errors between observed and predicted values.

Q: How do I calculate the coefficient of determination (R^2)?

A: To calculate the coefficient of determination (R^2), you need to follow the formula:

R^2 = 1 - (S_y^2 / (n * (S_y^2 - (S_xy)^2 / n)))

Q: How do I calculate the slope (b) of the regression line?

A: To calculate the slope (b) of the regression line, you need to follow the formula:

b = S_xy / S_x^2

Q: How do I calculate the intercept (a) of the regression line?

A: To calculate the intercept (a) of the regression line, you need to follow the formula:

a = \bar{y} - b * \bar{x}

Q: What is the least-squares regression equation?

A: The least-squares regression equation is written as:

y = a + b * x

where a is the intercept, b is the slope, and x is the independent variable.

Q: How do I use the least-squares regression equation to make predictions?

A: To use the least-squares regression equation to make predictions, you need to plug in the value of x into the equation and solve for y.

Q: What are the assumptions of least-squares regression?

A: The assumptions of least-squares regression are:

  • Linearity: The relationship between x and y is linear.
  • Independence: The observations are independent of each other.
  • Homoscedasticity: The variance of y is constant for all values of x.
  • Normality: The residuals are normally distributed.

Q: What are the limitations of least-squares regression?

A: The limitations of least-squares regression are:

  • It assumes a linear relationship between x and y.
  • It assumes that the residuals are normally distributed.
  • It assumes that the variance of y is constant for all values of x.

Q: What are some common applications of least-squares regression?

A: Some common applications of least-squares regression include:

  • Predicting stock prices
  • Modeling the relationship between temperature and crop yield
  • Analyzing the relationship between exercise and weight loss

Q: How do I choose the best model for my data?

A: To choose the best model for your data, you need to consider the following factors:

  • The number of parameters in the model
  • The complexity of the model
  • The fit of the model to the data
  • The interpretability of the model

Q: What are some common mistakes to avoid when using least-squares regression?

A: Some common mistakes to avoid when using least-squares regression include:

  • Failing to check the assumptions of the model
  • Failing to consider the limitations of the model
  • Failing to use the correct formula for the slope and intercept
  • Failing to use the correct formula for the coefficient of determination (R^2)