Assumptions in regression, Applied Statistics

Assignment Help:

Assumptions in Regression

To understand the properties underlying the regression line, let us go back to the example of model exam and main exam. Now we can find an estimate of a student's main exam points, if we also know his or her points on the model exam. As we have stated, a student with score of 85 in the model exam should receive points for the main exam in the vicinity of 75 to 95.

If we knew the model exam scores of all students along with their main exam scores, we would then have the population of values. The mean and the variance of the population of the model exam would be μx and σx2 and respectively. The measurements for the main exam points are  μy  and  σy2 .

The assumptions in regression are:

  1. The relationship between the distributions X and Y is linear, which implies the formula E(Y|X=x) = A + Bx at any given value of X = x.

  2. At each X, the distribution of Yx is normal, and the variances  σx2  are equal. This implies that E's have the same variance,  σ2.

  3. The Y-values are independent of each other.

  4. No assumption is made regarding the distribution of X.

    Since we do not have all of the students' course points and main exam points we must estimate the regression line E(Y|X = x) = A + BX.

    The figure shows a line that has been constructed on the scatter diagram. Note that the line seems to be drawn through the collective mid-point of the plotted points. The term  2148_simple linear regression.png  is the estimate of the true mean of Y's at any particular X = x.

    Figure 8

    682_assumptions in regression.png

Related Discussions:- Assumptions in regression

A new weight-watching company, A new weight-watching company, Weight Reduce...

A new weight-watching company, Weight Reducers International, advertises that those who join will lose, on the average, 10 pounds the first two weeks with a standard deviation of 2

Population variance, Examining the Population Variance Business decisio...

Examining the Population Variance Business decision making does not limit itself to setting up the hypothesis to test for the equality of more than two means or proportions sim

Financial payments technology, Suppose the money supply process is now repr...

Suppose the money supply process is now represented by the following function: where m measures the sensitivity of money supply with respect to the interest rate. (i) Us

Simplex method, #questionMaximize Z= 3x1 + 2X2 Subject to the constraints: ...

#questionMaximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0..

Appropriate statistical test, I would like to know what the appropriate sta...

I would like to know what the appropriate statistical test is for investigating an association between a nominal variable and an ordinal variable assuming normal distribution? It''

Mathematical properties of arithmetic mean, Mathematical Properties ...

Mathematical Properties The sum of deviations of the items from the arithmetic mean (taking signs into account) is always zero, i.e.      = 0. The sum of

Find the relation between two substance, Find the Relation between two subs...

Find the Relation between two substance: The following table shows the results obtained in experiments aimed to determine how solubility of water in benzene depends on tempera

Stat, solve problems

solve problems

Types of averages, The following are the various types of common averages u...

The following are the various types of common averages used in statistical analysis given in the form of a chart. Figure 1

Regression model, A real estate agency collected the data shown below, wher...

A real estate agency collected the data shown below, where           y  = sales price of a house (in thousands of dollars)           x 1 = home size (in hundreds of square f

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd