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

Standard deviation for grouped data, Grouped data  For ...

Grouped data  For grouped data, the formula applied is  σ = Where f = frequency of the variable, μ= population mea

Case # 2 , Case Problem: A Bipartisan Agenda for Change In a study conducte...

Case Problem: A Bipartisan Agenda for Change In a study conducted by Zogby International, more than 700 New Yorkers were polled to determine whether the New York state government w

..National Account- Descriptive Statistics, A country''s national accounts ...

A country''s national accounts are assumed to look as follows: GDP 1180 VAT and taxes 140 Commodity subsidies 60 Raw material and consumables 530 1. Calculate GVA 2. Calculate t

Uncertain demand, Consider a Cournot duopoly with two firms (fi rm 1 and f...

Consider a Cournot duopoly with two firms (fi rm 1 and fi rm 2) operating in a market with linear inverse Demand P(Q) = x Q where Q is the sum of the quantities produced by both

Econometrics, Ask question From the household budget survey of 1980 of the...

Ask question From the household budget survey of 1980 of the Dutch Central Bureau of Statistics, J. S. Cramer obtained the following logit model based on a sample of 2820 househol

Markov Chain, Each weekend, Derek either reads a book (B), goes to the cine...

Each weekend, Derek either reads a book (B), goes to the cinema (C), visits his local museum (M), or plays squash (S). If he reads a book one weekend, then he will take part in one

Level of significance, Level of Significance: α The main purpose of hyp...

Level of Significance: α The main purpose of hypothesis testing is not to question the computed value of the sample statistic, but to make judgment about the difference between

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