### Graphing With Excel - Linear Regression

The linear model assumes that the relations between two variables can be summarized by a straight line. The equation for estimates rather than parameters is: If Y is the vertical axis, then rise refers to change in Y. If X is the horizontal axis. The correlation between two variables can be positive (i.e., higher levels of one continuous variable is plotted along the X-axis and the other along the Y-axis. . Based on the observed data, the best estimate of a linear relationship will be. their scatterplot shows a linear pattern and the correlation between the variables The slope of a line is the change in Y over the change in X. For example, For example, in the equation y=2x – 6, the line crosses the y-axis at the value b= –6. calculated using formulas (and these formulas aren't too hard to calculate).

Comparing the first model with the rearranged version of the second model, it becomes easy to see that they are not the same. Note that neither way would produce the same line we would intuitively draw if someone handed us a piece of graph paper with points plotted on it. In that case, we would draw a line straight through the center, but minimizing the vertical distance yields a line that is slightly flatter i.

The Pearson product-moment correlation can be understood within a regression context, however. That is, you first subtracted off the mean from each observation, and then divided the differences by the standard deviation. Now, why does this matter? Using our traditional loss function, we are saying that all of the error is in only one of the variables viz.

### Correlation and Linear Regression

This is very different from saying the converse. This was important in an interesting historical episode: In the late 70's and early 80's in the US, the case was made that there was discrimination against women in the workplace, and this was backed up with regression analyses showing that women with equal backgrounds e.

Critics or just people who were extra thorough reasoned that if this was true, women who were paid equally with men would have to be more highly qualified, but when this was checked, it was found that although the results were 'significant' when assessed the one way, they were not 'significant' when checked the other way, which threw everyone involved into a tizzy.

See here for a famous paper that tried to clear the issue up. Updated much later Here's another way to think about this that approaches the topic through the formulas instead of visually: The difference between the mean of Y and The difference between the line and Y is This is the error part of Y, the residual.

## Introduction

A couple of other things to note about Table 2. The mean of the predicted values Y' is equal to the mean of actual values Yand the mean of the residual values e is equal to zero.

The variance of Y is equal to the variance of predicted values plus the variance of the residuals.

How can we find the location of the line? What are the values of a and b estimates of a and b? Finding the regression line: Method 1 It turns out that the correlation coefficient, r, is the slope of the regression line when both X and Y are expressed as z scores.

- Your Answer
- Simple Linear Regression
- Linear Regression in Excel

Remember that r is the average of cross products, that is, The correlation coefficient is the slope of Y on X in z-score form, and we already know how to find it. Just find the z scores for each variable, multiply them, and find the average. The correlation coefficient tells us how many standard deviations that Y changes when X changes 1 standard deviation. The regression b weight is expressed in raw score units rather than z score units. To move from the correlation coefficient to the regression coefficient, we can simply transform the units: Note that r shows the slope in z score form, that is, when both standard deviations are 1.

### Regression Basics

But we want to know the number of raw score units that Y changes and the number that X changes. So to get new ratio, we multiply by the standard deviation of Y and divide by the standard deviation of X, that is, multiply r by the raw score ratio of standard deviations.

To find the intercept, a, we compute the following: Now it turns out that the regression line always passes through the mean of X and the mean of Y. If there is no relationship between X and Y, the best guess for all values of X is the mean of Y. If there is a relationship b is not zerothe best guess for the mean of X is still the mean of Y, and as X departs from the mean, so does Y.

At any rate, the regression line always passes through the means of X and Y.

**Dependent and Independent Variables - X or Y - Science & Math - Linear, Inverse, Quadratic**

This means that, regardless of the value of the slope, when X is at its mean, so is Y. We can write this as from equation 2. So just subtract and rearrange to find the intercept. Another way to think about this is that we know one point for the line, which is.

We can rewrite the regression equation: