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Entire courses are given on linear regression and correlation. This chapter serves as an introduction to the topics.
It helps to review the equation of a line. We use for the -intercept and for the slope. The line has the form:
Have the students plot a line by eye using the following data. The independent variable represents the size of a color television screen in inches at Anderson's and represents the sales price in dollars.
9 | 20 | 27 | 31 | 35 | 40 | 60 | |
---|---|---|---|---|---|---|---|
147 | 197 | 297 | 447 | 1177 | 2177 | 2497 |
Ask them what they got for the slope and for the y-intercept. Make comparisons. This exercise should point out how difficult it is to get an accurate line of best fit and how many lines "seem" to fit the data. (This data is taken from the exercises.)
For the data above, use either a calculator or a computer and calculate the least squares or best fit line. Look at the scatter plot first. Ask the students if their "by eye" line looks like the calculated one. Explain the correlation coefficient and then check if the correlation coefficient is significant by comparing it to the correct entry in 95% CRITICAL VALUES OF THE SAMPLE CORRELATION COEFFICIENT Table at the end of the reading.
If you use the TI-83/84 series, enter the data into two lists first. Then plot the data points on the calculator. First set up the stat plot (2nd STAT PLOT). Then press ZOOM 9 to see the plot. To do the linear regression, go to the LinReg function in STAT CALC. Enter the lists. At this time, you could also enter a y-variable after the lists (after you enter the lists, enter a comma and then press VARS Y-VARS Function Y1). Press ENTER to see the linear regression. When you press GRAPH, the line will plot.
Line of best fit: .
Explain "predicting" (or forecasting) and have them predict the sales price of a 45 inch screen color TV. Have them predict the cost for a mini 5 inch color TV. (The answer is negative.) Discuss that the line is only valid from the lowest to the highest - values.
Have the students follow the "outlier" example in the text and (just once!) do the calculations for finding an outlier. Have them fill in the table below.
Find:
Find
the total number of data values (7 for this problem)
is the standard deviation of the values
Multiply by 1.9: _______
Compare each to .
If any is at least , then the corresponding point is an outlier. (None of the points is an outlier.)
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