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4 - Regression Analysis

This document provides notes on linear regression analysis. It defines regression lines and coefficients, and methods for obtaining the line of best fit using least squares. Formulas are given for calculating regression coefficients from sample data, identifying which is the regression of y on x and x on y, and determining the correlation between the variables. Guidelines are also provided for interpreting the regression coefficients and correlation value.

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Vishwa Shah
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0% found this document useful (0 votes)
246 views27 pages

4 - Regression Analysis

This document provides notes on linear regression analysis. It defines regression lines and coefficients, and methods for obtaining the line of best fit using least squares. Formulas are given for calculating regression coefficients from sample data, identifying which is the regression of y on x and x on y, and determining the correlation between the variables. Guidelines are also provided for interpreting the regression coefficients and correlation value.

Uploaded by

Vishwa Shah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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th e s ca tte r di agr am cl early i ndi ca tes li near rel a ti onshi p

be tw een x & y . We may the re fo re w an t to fi t a st raight


l i ne to b ri ng o u t thi s rel atio ns hi p mathema ti call y

a s the poi n ts are no t on the s trai gh t li ne , the n umbe r


o f li nes tha t ca n be d raw n i s unli mi te d . T hus gi ven a
s e t o f d a ta , ou r p robl em con ce rn s ab ou t dr aw i ng the
pa r ti cul ar s trai gh t li ne th at bes t re fl ects the li nea r tren d
i ndi ca ted by the poi n ts

th e p ri nci pl e i nvol ved i n ob tai ni ng the l i ne of be st f it i s cal l ed Me thod of Le ast Square s


Supp ose y’ = a + b x i s the li ne th a t bes t fi ts the da ta . We call i t a s p redi cti on equ a ti on
E xam pl e : y1’ = a + b x 1 i s the p redi cted v al ue of y w hen x = x 1 v/s y 1 w hi ch i s the a ctual v al ue of y
w hen x = x 1
Di ffe re nce be tw een the pr edi cted v al ue & the a ctual val ue i s call ed e rro r / re si dual (e ) as i n the abo ve
ca se e 1 = y 1 – y 1 ’

(x 5 ,y 5 )
e5 y = a + bx
(x 3 ,y 3 ) ( li ne o f be s t fi t )
( x 1 ,y 1 ) e3
e1
e2
(x2,y2)

o f all the po s si bl e s tr ai gh t li nes tha t ca n be d raw n o n s ca tte r di agr am , w e ch oo se the li ne o f bes t fi t the

o ne f or w hi ch the s um o f squ are s o f e rr or s i s mi ni mum

Ba sed on tha t w e have the foll ow i ng re sul ts

- 1 -
NO TE 1 :

REG RE SSIO N EQ U ATI O NS

Y on X X on Y

y – y = byx (x – x ) x – x = bxy (y – y )

w her e : b yx & bx y a r e ca lle d as re gr e ssion coeff icien t s a nd ca n be found us ing any of the for mulae lis ted

b e low d e pe nd ing on the type of d a ta g ive n in the ques tion

b yx = ( x – x ) ( y – y ) bxy = ( x – x ) ( y – y )
2
( x – x ) ( y – y ) 2

= nx y – x y = nx y – x y

nx 2 – ( x) 2 ny 2 – ( y) 2

= nuv – u v = nuv – u v
2 2
nu – ( u) nv 2 – ( v) 2

w her e u = x – a ; v = y – b

= r y = r x

x y
NO TE 2 :

ACU TE ANG L E ( ) BE TW EE N THE TW O RE G RESSI O N LI NES

Slop e of r e gr es s ion line Y on X = m 1 = b yx

Slop e of r e gr es s ion line X on Y = m 2 = 1

bxy

ta n  = m1 – m2

1 + m1m2

NO TE 3 :

CO RRE L ATI O N COEF FI CIENT (r )

b yx . bx y = r y x r x

x y

= r2

 r =  b yx . b xy r = + ve if b yx & b xy a re p osi ti ve

r = – ve if b yx & b xy a re nega ti ve
NO TE 4 :

– 1  r  +1

 0  r2  1

 0  byx . bxy  1

- 2 -
NO TE 5 :

I f gi ven ; re gre s si on li nes Y on X a nd X an d Y

Wri te Y on X a s y = Ax + B th en A = b yx

Wri te X on Y a s x = Ay + B th en A = b xy

NO TE 6 :

I DE NTIFI C ATI O N O F REG RESS IO N LI NES

Gi ve n tw o reg res si on li ne s w i th ou t s ta ti ng w hi ch i s Y on X & w hi ch i s X on Y ; f oll ow the

s tep s to i den ti fy the reg res si on li nes

S TEP 1 : As s ume one as Y on X an d o the r a s X o n Y

S TEP 2 : U si ng N OT E 5 , fi nd by x a nd bx y

S TEP 3 : Com pu te : b yx . bx y

ST EP 4 : i f 0  b yx . bx y  1 then the as sump ti on s a re co r rect el se reve rse the as sump ti on

NO TE 7 :

Me an s : x a nd y

Si n ce the tw o re g res si on line s a re ma de to pa ss th rou gh x & y ,thei r p oi nt of i nte r secti on i s x & y

He nce to fi nd x & y ; s ol ve the tw o re g res si on l i ne s si mul ta neou sl y

NO TE 8 :

b yx + bx y  r
2

H OW : b yx = r y ; b xy = r x r x 2 + y 2  2r
x y
x .y

b yx + bx y = r y + x b yx + bx y  2r
x y

b yx + bx y  r
= r y 2 + x 2
x .y 2

FI N AL LY : PR OP OF RE GR E SSI ON COEFF.
NOW ,
a) b yx . b xy = r2
( x  y ) 2  0
b) b yx , bx y & r

x 2 + y 2 2 x .y  0 mu s t be ar the same si gn

b) 0  b yx .bx y  1
x 2 + y 2  2 x .y
c) i f by x  1 then b xy  1
x 2 + y 2  2
d) b yx + bx y  r
x .y 2

- 3 -
NO TE 8 :

Change of scale affects the regressi on coefficients then ‘How to get back to ori ginal

regression coefficients’

Let u = x – a & v = y – b
c d

You compute the regressi on coefficients usi ng

b vu = n uv – u v & bu v = n uv – u v

n u 2 – ( u ) 2 n v 2 – ( v ) 2

To return to ori ginal regressi on coefficients

byx = d bvu & bxy = c buv


c d

- 4 -
1. Obtai n the regression lines
2. Obtai n the regression line y on x
x y x – x y – y (x – x ) 2 (y – y ) 2 (x – x )(y – y )
x y x – x y – y (x – x ) 2 (y – y ) 2 (x – x )(y – y )
1 5  2  4 4 16 8
3 10  4  8 16 32
2 7  1  2 1 4 2
5 14  2  4 4 8
3 9 0 0 0 0 0
7 18 0 0 0 0
4 11 1 2 1 4 2
9 22 2 4 4 8
5 13 2 4 4 16 8
11 26 4 8 16 32
0 0 10 40 20
0 0 40 80
x = 3 y = 9  (x – x ) 2  (y – y ) 2  (x – x )(y – y )
x = 7 y = 18  (x – x ) 2  (y – y ) 2  (x – x )(y – y )

Y ON X X ON Y
Y 0N X
byx =  (x – x )(y – y ) bxy =  (x – x )(y – y )
byx =  (x – x )(y – y )
 (x – x ) 2  (y – y ) 2
 (x – x ) 2
= 20 = 20
10 40 = 80
40
= 2 = 0.5
= 2

y – y = byx (x – x ) x – x = bxy (y – y )
y – y = byx (x – x )

y – 9 = 2 (x – 3 ) x – 3 = 0.5(y – 9 )
y – 18 = 2 (x – 7)

y – 9 = 2x – 6 x – 3 = 0.5x – 4.5
y – 18 = 2x – 14
y = 2x – 6 + 9 x = 0.5x – 4.5 + 3
y = 2x – 14 + 18

y = 2x + 3 x = 0.5x – 1.5
y = 2x + 4

- 5 -
3. x : years of servi ce
y : income (000’s) 04
y x
X : 21 25 26 24 19
a) Find regression equation of income on the years of service
b) What i niti al start would you recommend for a person Y : 19 20 24 21 16
applying for a job after having served in si mi lar capaci ty in Obtai n regressi on line X on Y
another company for 13 years

x y x – x y – y (x – x ) 2 (y – y ) 2 (x – x )(y – y )
SOLUTION
11 10 3 2 9 6

7 8  1 0 1 0 x y x – x y  y (y – y ) 2 (xx )(yy )

9 6 1  2 1  2 21 19 2 1 1 2

5 5  3  3 9 9 25 20 2 0 0 0

26 24 3 4 16 12
8 9 0 1 0 0
24 21 1 1 1 1
6 7 2  1 4 2
19 16 4 4 16 16
10 11 2 3 4 6
x = 23 0 34 31
56 56 0 0 28 21
y = 20
x y
 (x – x ) 2  (y – y ) 2  (x – x )(y – y )
x = 7 y = 7
bxy =  (x – x )(y  y )
 (y – y ) 2
byx =  (x – x )(y – y ) y – y = byx (x – x )
 (x – x ) 2 = 31
y  8 = 0.75(x – 8) 34
= 21
28 y – 8 = 0.75x – 6
= 0.91 (DI RECT DI VI SI ON)
= 3 y = 0.75x – 6 + 8
4 x – x = bxy (y – y )
y = 0.75x + 2 x  23 = 0.91(y – 20)
= 0.75 Put x = 13
x – 23 = 0.91y  18.2
y = 0.75(13) + 2
= 9.75 + 2 x = 0.91y + 4.8

= 11 .75(000 ’ s)

- 6 -
5. x : index of producti on 6. x : test scores
y : no. of unemployed (i n lacs) y : sales (i n 00’s)

find regression line y on x a) find regression line y on x b) Esti mate y when x = 17

x y x – x y – y (x – x ) 2 (y – y ) 2 (x – x )(y – y ) x y x – x y – y (x – x ) 2 (y – y ) 2 (x – x )(y – y )

100 15  4 0 16 0 16 35  7  10 49 70

102 12  2  3 4 6 22 42  1  3 1 3

104 13 0  2 0  0 28 57 5  12 25 60

107 11 3  4 9 12 24 40 1  5 1 5

105 12 1  3 1  3 29 54 6  9 36 54

112 12 8  3 64 24 25 51 2  6 4 12

103 19  1 4 1  4 16 34  7  11 49 77

99 26  5 11 25 55 23 47 0 2 0 0

832 120 0 0 120  98 + 6 =92 24 45 1 0 1 0

x y
 (x – x ) 2  (y – y ) 2  (x – x )(y – y ) 207 405 0 0 166 276 – 5 = 271
x =10 4 y = 15
x y  (x – x ) 2  (y – y ) 2  (x – x )(y – y )

x =23 y = 45

byx =  (x – x )(y – y ) y – y = byx (x – x )


b yx = ( x – x ) (y – y ) y – y = b yx (x – x )
 (x – x ) 2 2
( x – x )
y  15 = 0.77 (x – 104)
y  45 = 1 .632 ( x – 23)
= 92
= 271
120 y  15 = 0.77x + 80.08
166 y  45 = 1 .632 x  37 .536

= 0.77 y = 0.77x + 80.08 + 15


LOG CALC = 1 .632 y = 1 .632 x + 7 .464

( DI RE CT DI VI SI ON ) y = 0.77x + 95.08
2 .4330 y = 1 .632(17 ) + 7 .464
 2 .2201
A L 0 .2129 y = 27 .744 + 7 .464
1 .632
y = 35 .208

- 7 -
07. Y 0N X X 0N Y
The f oll ow ing ta bl e gi ve s th e ap ti tude s co res and p ro du cti vi ty i ndi ces of 10
byx =  (x – x )(y – y ) bxy =  (x – x )(y – y )
w orke r s sel ecte d a t ra ndom
 (x – x ) 2  (y – y ) 2
Ap ti tude : 60 62 65 70 72 48 53 73 65 82
Sco re (X ) = 1044 = 1044
894 1752
P ro du cti vi ty : 68 60 62 80 85 40 52 62 60 81
I ndex (Y )
LOG CALC LOG CALC
a) O b tai n the tw o reg re ssi on li nes
3 .0187 3 .0187
b) E s ti ma te the p rodu cti vi ty in dex of a w orke r w i th te s t sco re 9 2  2 .9513  3 .2435
c) th e te s t s core w hose p rodu cti vi ty i ndex i s 7 5 A L 0 .0674 A L 1 .7752
1 .168 0 .5960

x y x – x y – y (x – x ) 2 (y – y ) 2 (x – x )(y – y )
= 1.168 = 0.5960
60 68  5 3 25 9 15
y – y = byx (x – x ) x – x = bxy (y – y )
62 60  3  5 9 25 15

65 62 0  3 0 9 0
y – 65 = 1.168 ( x – 65) x – 65 = 0.596 ( y – 65)

70 80 5 15 25 225 75 y  65 = 1.168x  75.92 x  65= 0.596 y  38.74

72 85 7 20 49 400 140
y = 1.168x  75.92 + 65 x = 0.596y  38.74 + 65
48 40 17 25 289 625 425
y = 1.168 x  10.92 x = 0.596 y + 26.26
53 52 12 13 144 169 156
Put x = 92 Put y = 75
73 62 8  3 64 9  24

65 60 0  5 0 25 0 y = 1.168 (92)  10.92 x = 0.596 (75) + 26.26

82 81 17 16 289 256 272 y = 107.456  10.92 x = 44.7 + 26.26


650 650 0 0 894 17 52 1083–39 =1044
y = 96.536 x = 70.96
x y  (x – x ) 2  (y – y ) 2  (x – x )(y – y )
Producti vity index = 96.536 test score = 70.96
x =65 y = 65
When test score = 92 when producti vi ty index = 75

- 8 -
08. Two samples from bi vari ate populati ons have 15 observati ons
09. from the data of 20 pairs of observati ons on X and Y following
each . The sample means of X and Y are 25 and 18
results are obtained
respecti vely . The corresponding sum o f squares of devi ations
from means are 136 and 148 . The sum of product of devi ations x = 199 ; y = 94 ; (x – x ) 2 = 1298 ;  (y – y ) 2 = 600
from respecti ve means i s 122 . Obtain the equati on of line of
 (x – x )(y – y ) = – 262 .
regression of X on Y
find
SOLUTI ON a) the line of regressi on of y on x b)line of regressi on of x on y
x = 25 , y = 18 ,  (x – x ) 2 = 136 ;  (y – y ) 2 = 148
SOLUTION

 (x – x )(y – y ) = 122
Y 0N X X 0N Y

X 0N Y byx =  (x – x )(y – y ) bxy =  (x – x )(y – y )


 (x – x ) 2  (y – y ) 2
bxy =  (x – x )(y – y )
LOG CALC = 262 = 262
 (y – y ) 2
2 .0864 1298 600
= 122  2 .1703
148 A L 1 .9161 LOG CALC LOG CALC
0 .8243
2 .4183 2 .4183
= 0.8243  3 .1134  2 .7782
A L 1 .3049 A L 1 .6401
0 .2018 0 .4366
x – x = bxy (y – y )

= 0.2018 = 0.4366
x – 25 = 0.8243 (y – 18)
y – y = byx (x – x ) x – x = bxy (y – y )
x – 25 = 0.8243 y – 14.8374
y – 94 = 0.2018 ( x – 199 ) x – 199 = 0.4366 ( y – 94)

x = 0.8243 y – 14.8374 + 25 y  94 = 0.2018x + 40.1582 x  199 = 0.4366y + 41.0404

y = 0.2018 x + 40.1582 + 94 x = 0.4366y + 41.0404 + 199


x = 0.8243 y + 10.1626
y = 0.2018 x + 134.1582 x = 0.4366y + 240.040 4

- 9 -
10. for a bi variate data ; STEP 1

x = 53 , y = 28 , byx =  1.5 , bxy = 0.2 byx =  (x – x )(y – y ) = 6 = 1


Find a) esti mate of y for x = 50  (x – x ) 2 30 5

b) esti mate of x for y = 25

SOLUTION bxy =  (x – x )(y – y ) = 6 = 1


 (y – y ) 2 36 6
a) Y ON X

y  y = byx ( x – x ) STEP 2

y – 28 = 1.5(x – 53)
m 1 = byx = 1 ; m2 = 1 = 6
y  28 = 1.5(50 – 53) 5 bxy

y  28 = 1.5(3)

y  28 = 4.5 STEP 3

y = 32.5 tan  = m1 – m2
1 + m 1 .m 2

b) X ON Y 1  6
tan  = 5 2
x  x = bxy ( y – y ) 1 + 1 6
5 2
x – 53 = 0.2(x – 28)
tan  = 1 – 30
x  53 = 0.2(25 – 28)
5 + 6
x  53 = 0.2(3)
tan  = 29
x  53 = 0.6 11

x = 53.6 tan  = 29
11

09.  x = 40 ;  y = 32 ;  (x – x ) 2 = 30 ,  (y – y ) 2 = 36 ;  = tan  1 29
11
 (x – x )(y – y ) = 6 , find the regression coefficient s and the

measure of the acute angle between the regressi on line

- 10 -
01 . find the reg ress ion line y on x . Hence find y
w hen x = 10

x y x2 xy

1 2 1 2

2 4 4 8

3 7 9 21

4 6 16 24

5 5 25 25

6 6 36 36

21 30 91 116
2
x y x x y

x = x = 21 = 3.5
n 6

y = y = 30 = 5
n 6

byx = n xy   x. y
n x 2  ( x) 2

= 6(116)  (21)(30)
6 (91)  (21) 2

= 696  630
546  441

= 66
105

= 0.63

Equation

y  y = byx (x – x )

y  5 = 0.63( x  3.5)

y  5 = 0.63 x  2.205

y = 0.63 x  2.205 + 5

y = 0.63 x + 2.795

Put x = 10

y = 0.63(10) + 2.795

y = 6.3 + 2.795 = 9.095

11
02 . H e ig ht of fa ther (X ) : 64 62 66 63 67 61 69 65 Y on X X on Y

H e ig ht of Son (Y) : 67 65 67 64 68 65 67 64
b yx = b vu bxy = b uv
H e ig ht of fa ther (X ) : 67 66

H e ig ht of Son (Y) : 70 66 = nuv  uv = n uv  uv

a ) F ind the r eg r es sion line s nu 2  ( u) 2 n v 2  ( v) 2

b ) Es tima te s ons heig ht if fa the r s he ig ht is 68 inc hes = 10(27 )  0(3) = 10(27 )  0(3)
2
c ) Es tima te fa the rs he ig ht if s ons he ig ht is 59 inc h es 10(56 ) – (0) 10(33 ) – (3) 2

= 27 = 27
X y u= x65 v= y66 u2 v2 uv 56 321

64 67 1 1 1 1 1 = 0 .4821 = 0 .8412

62 65 3  1 9 1 3
R eg r es s ion line Y on X R eg r es s ion Line X on Y
66 67 1 1 1 1 1
y – y = b yx( x – x) x – x = b x y( y – y)
63 64 2  2 4 4 4
y – 66 .3 = 0 .4821( x – 65) x – 65 = 0 .8412( y – 66 .3 )
67 68 2 2 4 4 4

61 65 4  1 16 1 4 y – 66 .3 = 0 .4821 x – 31 .3365 x – 65 = 0 .8412 y – 55 .77156

69 67 4 1 16 1 4 y = 0 .4821 x  31 .3365 + 66 .3 x = 0 .8412 y  55 .771 56 + 65

65 64 0  2 0 4 0
y = 0 .4821 x + 34 .9635 x = 0 .8412 y + 9 .22844
67 70 2 4 4 16 8

66 66 1 0 1 0 0 P ut x = 68 P ut y = 59

650 663 0 3 56 33 27
y = 0 .4821(68 ) + 34 .9635 x = 0 .8412 (59 ) + 9 .22844
x y u v u 2 v 2 uv
y = 32 .7828 + 3 4.9 635 x = 49 .6308 + 9 .22 844

x = x = 650 = 65 y = 67 .7463 x = 58 .8592


n 10

y = y = 663 = 66 .3 Sons heig ht = 67 .7463 inc hes fa ther ’s height = 58 .8592 inc hes
n 10
When fa thers height = 68 inc hes w hen son s heig ht = 59 inc hes

- 12 -
03.
04.
x i = 56 ; y i = 56 ; x i 2 = 476 ; y i 2 = 476 ;
I nformati on on vehicles (i n thousands)
x i y i = 469 , n = 7
passing through seven different highways
a) Obtai n linear regression of Y on X
during a day (X) and number of acci dents
b) y if x = 12
reported (Y) i s gi ven as

x = x = 56 = 8 x = 105 ; y = 409 ; x 2 = 1681 ;y 2 = 39350


n 7
xy = 8075
y = y = 56 = 8
n 7 Obtai n linear regression of Y on X

byx = n xy   x. y SOLUTION

n x 2  ( x) 2
x = x = 105 = 15
n 7
= 7(469)  (56)(56)
7(476)  (56) 2 y = y = 409 = 58.43
n 7
= 3283  3136
3332  3136 byx = n xy   x. y

= 147 n x 2  ( x) 2

196
= 7(8075)  (105)(409)
= 21
7 (1681)  (105) 2
28
= 56525  42945
= 3 11767  11025 LOG CALC
4
4 .1329
= 13580  2 .8704
= 0.75
742 A L 1 .2625
Equation
18 .30
= 18.30
y  y = byx (x – x )

Equation
y  8 = 0.75( x  8)

y  y = byx (x – x )
y  8 = 0.75 x  6

y = 0.75 x + 2 y  58.43 = 18.30 ( x  15)

Put x = 12
y  58.43 = 18.30x  274.5

y = 0.75(12) + 2
y = 18.30x  274.50 + 58.43
y = 9 + 2

y = 11 y = 18.30x  216.07

13
05. 06.
n = 10 ,  x = 250 ,  y = 300 ,  x 2 = 6500 ,
The records of ten days is gi ven
 y 2 =10000 ,  xy = 7900 .
x = 580 ; y = 370 ; x 2 = 41658 ; Find acute angle between two lines
STEP 1
y 2 = 17206 ; xy = 11494

Obtai n regressi on line x on y byx = n xy   x. y


n x 2  ( x) 2
SOLUTION

= 10 (7900 )  250(300)
bxy = n xy   x. y 10(6 500)  (250) 2
n y 2  ( y) 2
= 79000  75000
= 10(11494)  (580)(370) 65000 – 62500

10 (17206)  (370) 2
= 4000
2500
= 114940  214600
172060  136900 = 85
LOG CA LC

= 99660 3 .9986 bxy = n xy   x. y


35160  3 .5460
n y 2  ( y) 2
A L 0 .4526
=  9966 2 .835
3516 = 10 (7900)  250(300)
10(10000)  (300) 2
=  2.835
= 79000  75000
100000 – 90000
x  x = bxy ( y – y )
= 4000
x – 58 = 2.835 (y – 37) 10000

x  58 = 2.835y + 104.895 = 25


STEP 2
x = 2.835y + 162.895
m 1 = byx = 8 , m2 = 1 = 5
5 bxy 2

STEP 3

tan  = m1 – m2
1 + m 1 .m 2

8  5
tan  = 5 2
1 + 8 5
5 2

tan  = 16 – 25
10 + 40

tan  = 9
50

 = tan  1 9
50

14
01. you are gi ven below the following information about adverti sing
02. Sales (crores) exp.(crores)
and sales (x) (y )
Ad v. Exp. (x) sales (y ) in lacs Mean 40 6
Mean 10 90 S.D 10 1.5 correlati on coefficient = 0.9
S.D. 3 12 r = 0.8 . Obtai n regressi on lines to
a) What is the likely sales when adv. budget is ` 15 lacs a) esti mate sales for a proposed adv. exp. of ` 10 crores

b) what should be adv. exp. if the company wants sales target b) esti mate adv. exp. for proposed sales target of ` 60 crore
y on x x on y
of ` 120 lacs
y on x x on y byx = r . y bxy = r . x
x y
byx = r . y bxy = r . x
x y = 0.9 x 1.5 = 0.9 x 10
10 1.5
= 0.8 x 12 = 0.8 x 3
3 12 = 1.35 = 9 x 10
10 15
= 0.8 x 4 = 3.2 = 0.8 = 0.2
4 = 0.135 = 6

y – y = byx(x – x ) x – x = bxy(y – y ) y – y = byx(x – x ) x – x = bxy(y – y )

y – 90 = 3.2 (x – 10) x – 10 = 0.2(y – 90) y – 6 = 0.135(x – 40) x – 40 = 6 (y – 6)

y – 90 = 3.2x – 32 x – 10 = 0.2y – 18 y – 6 = 0.135x – 5.4 x – 40 = 6y – 36

y = 3.2x – 32 + 90 x = 0.2y – 18 + 10 y = 0.135x – 5.4 + 6 x = 6y – 36 + 40

y = 3.2x + 58 x = 0 .2y  8 y = 0.135x + 0.6 x = 6y + 4

Put x = 15 Put y = 120 Put x = 60 Put y = 10

y = 3.2(15) + 58 x = 0.2(120)  8 y = 0.135 (60) + 0.6 x = 6(10) + 4

y = 48 + 58 x = 24 – 8 y = 8.1 + 0.6 = 8.7 x = 60 + 4 = 64

y = 106 x = 16
adv exp. = ` 8.7 cr when sales = ` 64 cr when
Sales = ` 106 lacs when adv exp. = ` 16 lacs when Sales = ` 60 cr adv exp. = ` 10 cr
Ad v. budget = ` 15 lacs sales target = ` 120 lacs

- 15 -
03. you are gi ven below the following information about Profi t rate

(X) and growth rate (Y) 04. if for bi – variate data x = 10 and y = 12 , vari ance V(x ) = 9 ;
X Y
y = 4 & r = 0.6
Mean 20 25
Variance 9 25 correlati on coeff. = 0.9 . Esti mate x when y = 10 and y when x = 5
y on x x on y
a) Obtai n the regression line of X on Y
b) Esti mate the growth rate when the profi t rate i s 16% byx = r . y bxy = r . x
y on x x on y x y

byx = r . y bxy = r . x = 0.6 x 4 = 0.6 x 3


x y 3 4

= 0.9 x 5 = 0.9 x 3 = 0.2 x 4 = 0.3 x 3


3 5 2

= 0.3 x 5 = 2.7 x 2 = 0.8 = 0.45


5 x 2

= 1.5 = 0.54 y – y = byx(x – x ) x – x = bxy(y – y )

y – y = byx(x – x ) x – x = bxy(y – y ) y – 12 = 0.8 (x – 10) x – 10 = 0.45 (y – 12)

y – 25 = 1.5 (x – 20) x – 20 = 0.54 (y – 25) y – 12 = 0.8x – 8 x – 10 = 0.45 y – 5.4

y – 25 = 1.5x – 30 x – 20 = 0.54 y – 13.5 y = 0.8x – 8 + 12 x = 0.45 y – 5.4 + 10

y = 1.5x – 30 + 25 x = 0.54 y – 13.5 + 20 y = 0.8x + 4 x = 0.45 y + 4.6

y = 1.5x  5 x = 0.54 y + 6.5 Put x = 5 Put y = 10

Put x = 16 y = 0.8(5) + 4 x = 0.45(10) + 4.6

y = 1.5(16)  5 y = 4 + 4 x = 4.5 + 4.6

y = 24  5 = 19 y = 8 x = 9.1

growth rate = 19%


when the profi t rate i s 16%

16
05. Y on X
from the following data regarding the
byx = r y
wholesale and retail price of a commodi ty
x
esti mate the retail price when wholesale
price is Rs 240 per quintal = 0.93 x 2
3
Wholesale(x) Retail (y)
= 0.62
Avg price 200 280
(per qtl.) y  y = byx (x – x )
S.D. 20 25
y – 23 = 0.62(x – 27)
r = 0.94
Put x = 23
Y on X
y – 23 = 0.62(23 – 27)
byx = r y
x y – 23 = 0.62(4)

= 0.94 x 25 y – 23 = 2.48
20
y = 20.52

= 1.175
ans : age of wife = 20.52 when age of
y  y = byx (x – x )
husband = 23 yrs

y – 280 = 1.175 (x – 200)

Put x = 240
07. Find the equation of line of regression of
y – 280 = 1.175 (240 – 200)
Y on X for the following data
y – 280 = 1.175 (40)
n = 8 ;  (x – x )(y – y ) = 120 ; x = 20
y – 280 = 47
y = 36 ; x = 2 ; y = 3

y = 327 byx = cov(x,y)


x 2
ans : Retail price = Rs327/ - when whole sale
 ((x – x )(y – y )
price is Rs 240-
= n
x 2

06. 120
= 8 = 15 = 3.75
the following data relates to the age of
4 4
husband and wife Y on X

Husbands Wi ves y – y = byx (x – x )

X Y y – 36 = 3.75(x – 20)

Mean 27 yrs 23 yrs y – 36 = 3.75x – 75

SD 03 yrs 02 yrs ; r = 0.93 y = 3.75x – 75 + 36


Esti mate the age of the woman whose
y = 3.75x – 39
husband i s aged 23

- 17 -
08. The followi ng results were obtained from

records of age (X) and systolic blood

pressure (Y) of 10 women

X Y

Mean 53 142

Vari ance 130 165 ;

 (x – x )(y – y ) = 1220

Find regression equati on to esti mate 09

the blood pressure of a woman w i th the following results were obtained from

age 47 years record of age X and systolic blood pressure (Y)


of a group of 10 men
byx = cov(x,y) X y
x 2
Mean 50 140

 ((x – x )(y – y ) Vari ance 130 165 ,  (xx )(yy ) = 1220


= n Obtai n the regressi on line to esti mate blood
x 2 pressure of a man of age 40 years

SOLUTION
1220 LOG CA LC
= 10
130 2 .0864 byx = cov(x,y)
 2 .1139
x 2
= 122 A L 1 .9725
130 0 .9387  ((x – x )(y – y )
= n
= 0.9387 x 2
Y on X
1220
= 10
y – y = byx (x – x ) LOG C ALC
130
y – 142 = 0.9387(x – 53) 2.0864
= 122  2.1139
y – 142 = 0.9387x – 48.7511 130 AL 1.9725
0.9387
y = 0.9387x – 48.7511 + 142 = 0.9387

y = 0.9387x + 92.2489 Y on X

y – y = byx (x – x )
Put x = 47
y – 140 = 0.9387(x – 50)
y = 0.9387(47) + 92.2489
y – 140 = 0.9387x – 46.935
y = 44.1189 + 92.2489
y = 0.9387x + 93.065
= 136.3678
Put x = 40
ans : esti mated blood pressure of a
y = 0.9387(40) + 93.065
woman aged 47 years is 136.3678
y = 37.548 + 93.065

= 130.613

ans : esti mated blood pressure of a


man aged 40 years i s 130.613

- 18 -
10. I f for a bi variate data byx = 1.2 ,
01. The equation of the two regression lines
x = 4 ; r = 0.6 find y , bxy and the
are 3x + 2y – 26 = 0 and 6x + y – 31 = 0 .
acute angle between the two regressi on
a) correlati on coefficient b)mean’s
li nes
ST EP 1
ST E P 1 b yx = r . y
x
AS SUME
1.2 = 0.6 x y
4 YON X : 3x + 2y – 26 = 0

y = 1.2 x 4 2y =  3x + 26
0.6 y = 8
y = 3x + 26
STEP 2
bxy = r . x 2 3
y
byx =  3
= 0.6 x 4 = 0.3 2
8
STEP 3 X ON Y : 6x + y – 31 = 0

m 1 = byx = 1.2 = 12 = 6 6x =  y + 31

10 5
x =  1 y + 31
6 6
m2 = 1 = 1 = 10
bxy 0.3 3 bxy = 1
6
ST E P 4
STEP 2
tan  = m1 – m2
1 + m 1 .m 2 r2 = byx . bxy

6  10 = 3 x 1
tan  = 5 3 2 6

1 + 6 10
= 1
5 3
4

tan  = 18 – 50
Since 0  r2  1
15 + 60
Our assumpti ons are correct

tan  = 32
r =  1
75
2

 = tan  1 32 =  1 ( byx & bxy are ve)


57 2

STEP 3

2 x 3x + 2y = 26
6x + y = 31

6x + 4y = 52
 6x + y = 31
3y = 21

y = 7

subs in (1) x = 4

- 19 -
03. the equati ons of the two regressi on lines
02. the regression equations are
are 10x – 4y = 80 & 10y – 9x =  40
10x + 3y – 62 = 0 & 6x + 5y –50 = 0
Find i ) means ii ) byx & bxy
I dentify the regressi on of x on y . Hence
iii) var (x) if var(y) = 36 i v) r
find mean of x & y . Als o fi nd x if y = 2 STEP 1

STEP 1 AS SUME

AS SUME XON Y : 10x  4y = 80

XON Y : 10x + 3y – 62 = 0 10x = 4y + 80

10x=  3y + 62 x = 4y + 80
10 10
x = 3y + 62
10 10 bxy = 4
10
bxy =  3
10 Y ON X: 10y – 9x =  40

Y ON X: 6x + 5y – 50 = 0 10y = 9x  40

5y =  6x + 50 y = 9 x  40
10 10
y =  6 x + 50
5 6
byx = 9

byx = 6 10
5
STEP 2
STEP 2

r2 = byx . bxy
r2 = byx . bxy
= 4 x 9
= 3 x 6
10 5 10 5

= 9 = 36
25 100

Since 0  r2  1 Since 0  r2  1
Our assumpti ons are correct Our assumpti ons are correct

r =  3 r =  6
5 10

=  3 ( byx & bxy are ve) = + 3 ( byx & bxy are + ve)
5 5

STEP 3 STEP 4 STEP 3 STEP 4

10x + 3y = 62 bxy = r x x 10x  4y = 80 x 5 bxy = r x x


6x + 5y = 50 y 9x + 10y = 40 x 2 y

50x + 15y = 310  3 = 3 x x 50x  20y = 400 4 = 3 x x


 18x + 15y = 150 10 5 2  18x + 20y = 80 10 5 6
32x = 160 32x = 320
x = 1
x = 5 x = 10 x = 4

subs in (2) y = 4 subs in (2) y = 5 var (x) = 16

- 20 -
04. vari ance of x = 9 , 05. For the two regressi on equati ons :

Reg. equ ’s 8x – 10y + 66 = 0 ; 40x – 18y = 214 4y = 9x + 15 ; 25x = 6y + 7

Find the mean of x and y and standard find correlati on coefficient r ; x and y
STEP 1
devi ati on of y
STEP 1
AS SUME

AS SUME
YON X : 4y = 9x + 15

XON Y : 40x – 18y = 214 y = 9x + 15

40x = 18y + 214 4 4

x = 18y + 214 byx = 9


40 40 4

X ON Y : 25x = 6y + 7
bxy = 18 = 9
40 20 x = 6 y + 7
25 25
Y ON X: 8x – 10y + 66 = 0
bxy = 6
10y = 8x + 66
25
y = 8 x + 66
STEP 2
10 10

r2 = byx . bxy
byx = 8 = 4
10 5 = 9 x 6

STEP 2 4 25

= 54
r2 = bxy . byx
100
= 9 x 4
20 5 Since 0  r2  1
Our assumpti ons are correct
= 36
r =  54
100
100
0  r2  1 Since
r = + 54 ( byx & bxy are ve)
Our assumpti ons are correct
100
r =  6
10 log r = 1 log 54 – log 100
2
= + 3 ( byx & bxy are + ve)
5 log r = 1 1.7324  2.0000
STEP 3 STEP 4 2

40x – 18y = 214 byx = r x y log r = 1.7324  2.0000


8x – 10y = 66 x 5 x 2 2

40x – 18y = 214 4 = 3 x y log r = 0.8662  1.0000


40x  50y = 330 5 5 3
 + +
log r = 1 . 8662
32y = 544 y = 4

y = 17 r = AL (1 . 8662 )

subs in (2) x = 13 var (y) = 16 r = 0.7348

- 21 -
06. Regression of two series are

2x – y – 15 = 0 & 3x – 4y + 25 = 0

F ind mea n of x & y ,c oefficient of c or rela tion


STEP 1

AS SUME

XON Y : 2x – y – 15 = 0

2x = y + 15

x = 1 y + 15
STEP 3
2 2

3 x 9x – 4y =  15
bxy = 1
2 x 25x  6y = 7 2

27x  12y = 45 Y ON X : 3x – 4y + 25 = 0

50x  12y = 14 4y = 3x + 25
 + 
 23x = 59 y = 3 x + 25
4 4
x = 59
23 byx = 3
4
subs in (1) STEP 2

9 59  4y =  15 r2 = bxy . byx
23
= 1 x 3
531  4y =  15 2 4
23
= 3
 4y =  15  531 8
23
Since 0  r2  1
 4y =  345  531 Our assumpti ons are correct
23
r =  3
 4y =  876 8
23
r = + 3 ( byx & bxy are + ve)
4y = 876 8
23
log r = 1 log 3 – log 8
2
y = 219
23 log r = 1 0.4771  0.9031
2

log r = 0.477 1  0.9031


2 2

log r = 0.2386  0.4516

log r = 1 . 7870

r = AL (1 . 7870 )

r = 0.6124

- 22 -
07. 2x + 3y – 6 = 0 & 5x + 7y – 12 = 0 are S TEP 3

two regre ssi on lines .Fi nd correlation coefficient


bxy = r. x
STEP 1 y

AS SUME  7 = 0.9661 x

XON Y : 5x + 7y – 12 = 0 5 y

5x =  7y + 12 x = 7
y 5 x 0.9661
x = 7y + 12
5 5
x = 7
bxy =  7
y 4.8305 LOG CALC
5 4.8451
 4.6840
Y ON X : 2x + 3y – 6 = 0 x = 70000
y 48305 AL 0.1611
3y =  2x + 6 1.449
x = 1.449
y =  2 y + 6
3 3 y

byx = 2
3
STEP 2 08. Values of two regressi on coefficients

between the vari ables X and Y are byx = –


r2 = bxy . byx
0.4 and bxy = – 2.025 respecti vely . Obtain
= 7 x 2
the value of correlati on coefficient
5 3
SOLUTION
= 14
15 r 2 = byx x bxy

Since 0  r2  1
r 2 = 0.4 x 2.025
Our assumpti ons are correct
r2 = 4 x 2025
r =  14
10 1000
15

r =  14 ( byx & bxy are ve) r2 = 8100


10000
15

r2 = 81
log r ’ = 1 log 14 – log 15 100
2
r =  9
log r’ = 1 1.1461  1.1761 10
2
r =  9 (byx & bxy are ve)
10
log r’ = 1.1461  1.1761
2 2

log r’ = 0.5730  0.5880

log r ’ = 1 . 9850

r ’ = AL (1 . 9850 )

r’ = 0.9661 r =  0.9661

- 23 -
09. Values of two regression coefficients
(byx and bxy) are –0 .75 and –1.1
respecti vely . Obtain the value of r

SOLUTION

r 2 = byx x bxy

r 2 = 0.75 x 1.1

10. regression coefficients between the


r2 = 75 x 11
100 10 vari ables X and Y are byx = –0.6 and bxy = –

0.3 respecti vely . Obtain the value of


r2 = 825
correlati on coefficient
1000
SOLUTION

r =  825
1000 r 2 = byx x bxy

r 2 = 0.6 x 0.3
r =  825 ( byx & bxy are ve)
1000
r2 = 6 x 3
10 10
log r’ = 1 log 825 – log 1000
2 r2 = 18
100
log r’ = 1 2.9165  3.0000
2
r =  18
100
log r’ = 2.9165  3.0000
2 2
r =  18 ( byx & bxy are ve)
log r’ = 1.4583  1.5000 100

log r ’ = 1 . 9583 log r’ = 1 log 18 – log 100


2
r ’ = AL (1 . 9583 )
log r’ = 1 1.2553  2.0000
2
r’ = 0.9084

log r’ = 1.2553  2.0000


r =  0.9084
2 2

log r’ = 0.6277  1.0000

log r’ = 1 . 6277

r’ = AL (1 . 6277 )

r’ = 0.4243

r =  0.4243

- 24 -
11. regression coefficients between the 12. for 50 students of a class the regression

vari ables X and Y are byx = – 1.5 and bxy equati on of marks in Stati stics (x) on

= – 0.2 respecti vely . Obtai n the value the marks in a/c (y) i s 3y –5x+180 = 0 .

of correlation coefficient The mean of marks of accounts is 44

SOLUTION and vari ance of marks in Stati stics is

9/16 t h of the vari ance of marks in


r 2 = byx x bxy
accounts . Find mean marks of
r 2 = 1.5 x 0.2 Stati stics and correlati on coefficient

r2 = 15 x 2
SOLUTION :
10 10
GIVEN : X ON Y : 3y – 5x + 180 = 0
r2 = 30 y = 44
100
x 2 = 9

r =  3 ( byx & bxy are ve) y 2 16


10 STEP 1

X ON Y : 3y – 5x + 180 = 0
log r’ = 1 log 3 – log 10
5x = 3y + 180
2
x = 3y + 180
log r’ = 1 0.4771  1.0000 5 5
2
bxy = 3
5
log r’ = 0.4771  1.0000
2 2 STEP 2
bxy = r . x
log r’ = 0.2386  0.5000 y

3 = r x 3
log r’ = 1 . 7386
5 4

r’ = AL (1 . 7386 ) r = 4
5

r’ = 0.5478 STEP 3
Put y = 44 i n
r =  0.5478
X = 3y + 180
5 5

x = 3 (44) + 180
5

x = 132 + 180
5

x = 312
5

x = 62.4

mean marks in stati stics = 62.4

- 25 -
13. For group of 100 students the equation
4  25
of regressi on line of marks i n Economics tan  = 3 12
(Y) on marks in Book keeping (X) is gi ven 1 + 4 25
3 12
by 4x – 3y – 120 = 0 . Rati o of vari ance

of x to variance of y is 9 : 25 . Find tan  = 48 – 75


36 +100
measure of acute angle between the

regression lines tan  =  27


136
SOLUTION :
tan  = 27
GIVEN : Y ON X : 4x – 3y – 120 = 0
136
x 2 = 9
1
y 2 25  = tan 27
136
STEP 1

Y ON X : 4x – 3y – 120 = 0
X TRA SU M
3y = 4x  120
b ri ng ou t the i nco nsi s ten cy i f any i n the
y = 4x  120
3 3 f oll ow i ng

a ) b yx + bx y = 1 .3 0 a nd r = 0 .7 5
byx = 4
3 b ) b yx = b xy = 1 .5 0 a nd r =  0 .9

c) b yx = 1 .9 a nd b xy =  0 .2 5
STEP 2
byx = r . y d ) b yx = 2 .6 a nd b xy = 1
x
2 .6

4 = r x 5
3 3 a ) b yx + bx y = 1 .3 0 = 0 .6 5
2 2
r = 4
5 b yx + bx y  r i s no t sa ti s fi ed
2
STEP 3 he nce i ncon si s ten t
bxy = r . x
y b ) b yx , bx y & r mu s t ha ve the same si gn

The ab ove co ndi ti on i s no t sa ti s fi ed and


= 4 x 3
5 5 he nce i ncon si s ten t

= 12
c) b yx , bx y & r mu s t ha ve the same si gn
25
The ab ove co ndi ti on i s no t sa ti s fi ed and
STEP 4 he nce i ncon si s ten t

m 1 = byx = 4
3 d ) s ta teme n t i s con si s ten t

m2 = 1 = 25
bxy 12

STEP 5

tan  = m1 – m2
1 + m 1 .m 2

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