Regression lines, Applied Statistics

Assignment Help:

Regression Lines

It has already been discussed that there are two regression lines and they show mutual relationship between two variable . The regression line Yon X gives   the most probable  value of y of given value of x whereas the regression  line x on y gives the most probable values  of y

Why there are two Regression Lines:

First Reason: For two mutually related series there are two regression lines. First line of regression is X on Y and second line of regression is X on Y.

While constructing line of regression of X on Y, Y is treated as independent variable whereas X is treated as dependent variable. This line gives most probable values of X for given  values of X for given values of Y. In   the same way line of regression of Y on variable. This line gives the most probable values of Y for given values of X. Practically  X and Y both variables may be required to be estimated, hence there is necessity  of two regression lines. One for best estimation of X and other for Y 

Second Reason: The regression lines are those best fit lines which are drawn on least squares assumption. Under least square method the line which are to be drawn should be in that manner so that the total of the squares of the deviations of the various points is minimum. The deviation of the various points of actual values up to the regression online can be measured by two ways (a) Horizontally i.e. parallel to X axis and (b) Vertically i.e. parallel to Y axis .Hence for minimising the total of squares separately there should be two regression lines.

The regression line Y and X is drawn in such a way that it minimises total of squares of the vertical deviations. In the same way   regression line X on Y   is drawn in such a way that it minimises the total squares of the horizontal deviations. Hence it is essential to have two regressio line under the assumptions of least square method.


Related Discussions:- Regression lines

Number of principal components, While there are p original variables the n...

While there are p original variables the number of principal components is m such that m

Determine the subset of variables, Agency revenues. An economic consultant ...

Agency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly agency revenues ( y ).

Determine market interest rate, The interest rate on the three year loan is...

The interest rate on the three year loan is 0.087. Whereas the interest rate on the two year loan is 0.085 as given in A. Suppose that the liquidity premium at t=1 is 0.002 and tha

Transformation of data, PCA is a linear transformation that transforms the ...

PCA is a linear transformation that transforms the data to a new coordinate system such that the greatest variance by any projection of the data comes to lie on the first coordinat

B) Distinguish between:, X 110 120 130 120 140 135 155 160 165 155 ...

X 110 120 130 120 140 135 155 160 165 155 Y 12 18 20 15 25 30 35 20 25 10

Active control equivalence studies (aces), Active Control Equivalence Studi...

Active Control Equivalence Studies (ACES) Clinical trials the field in which the object is easy to show that the new treatment is  as good as the existing treatment. Such type

Descriptive statistics for every stock, Simple Linear Regression One ca...

Simple Linear Regression One calculate of the risk or volatility of an individual stock is the standard deviation of the total return (capital appreciation plus dividends) over

Multivariate analysis of variance, Multivariate analysis of variance (MANOV...

Multivariate analysis of variance (MANOVA) is a technique to assess group differences across multiple metric dependent variables simultaneously, based on a set of categorical (non-

Geometric mean, Geometric Mean is defined as the n th root of the ...

Geometric Mean is defined as the n th root of the product of numbers to be averaged. The geometric mean of numbers X 1 , X 2 , X 3 .....X n is given as

Calculate the mle estimate for mean, Each section of the SAT test is suppos...

Each section of the SAT test is supposed to be distributed normally with a mean of 500 and a standard deviation of 100. Suppose 5 students in a class took the SAT math test. They r

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