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    Regression Analysis: By: Vaibhav Sahu

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    sahuvaibhav
    This document discusses regression analysis, including: - Regression finds relationships between dependent and independent variables, allowing for prediction, understanding causes and effects, and time series analysis. - Linear regression can be univariate, multivariate, simple, or multiple depending on the number of dependent and independent variables. - The goal is to estimate the population regression function based on the sample regression function, using ordinary least squares to minimize the sum of the squared residuals. - An example of performing regression analysis using R is provided.

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    Regression Analysis: By: Vaibhav Sahu

    Uploaded by

    sahuvaibhav
    95 views17 pages
    This document discusses regression analysis, including: - Regression finds relationships between dependent and independent variables, allowing for prediction, understanding causes and effects, and time series analysis. - Linear regression can be univariate, multivariate, simple, or multiple depending on the number of dependent and independent variables. - The goal is to estimate the population regression function based on the sample regression function, using ordinary least squares to minimize the sum of the squared residuals. - An example of performing regression analysis using R is provided.

    Original Description:

    Regression Analysis using R

    Original Title

    Regression Analysis

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    This document discusses regression analysis, including: - Regression finds relationships between dependent and independent variables, allowing for prediction, understanding causes and effects, and time series analysis. - Linear regression can be univariate, multivariate, simple, or multiple depending on the number of dependent and independent variables. - The goal is to estimate the population regression function based on the sample regression function, using ordinary least squares to minimize the sum of the squared residuals. - An example of performing regression analysis using R is provided.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    95 views17 pages

    Regression Analysis: By: Vaibhav Sahu

    Uploaded by

    sahuvaibhav
    This document discusses regression analysis, including: - Regression finds relationships between dependent and independent variables, allowing for prediction, understanding causes and effects, and time series analysis. - Linear regression can be univariate, multivariate, simple, or multiple depending on the number of dependent and independent variables. - The goal is to estimate the population regression function based on the sample regression function, using ordinary least squares to minimize the sum of the squared residuals. - An example of performing regression analysis using R is provided.

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    You are on page 1of 17

    Regression Analysis

    By:
    Vaibhav Sahu

    Regression

    What
    Why
    How
    Example Using R

    What

    Y f(X)
    Y - Dependent on X
    Y Dependent Variable, Response Variable, Effect
    X Independent or Predictor Variable, Cause
    Regression is all about creating a valid
    relationship (mathematical equation or model)
    between dependent and independent variables
    Example: Relationship between demand of a
    product and the price of the same (Price
    Elasticity)

    Why
    Prediction, Forecasting
    Understand Population response based on
    sample
    Time series analysis (Trend Analysis) to
    know the future
    Cause Effect Relation (but not necessary)
    Applied in various domain like economics,
    management, social sciences etc.

    Classification
    Linear Regression
    Y = 2+3*x
    Non Linear Regression
    Y = 2+3*x+x^2

    Linear Regression
    Classification
    Univariate : One Dependent variable(Y)
    Y=a+bX

    Multivariate: Two or more Dependent variables


    Simple: Only on Independent Variable (X)
    Y=a+bX

    Multple: Two or more Independent variables


    (X1, X2,X2..)
    Y = a+b1X1+b2X2+b3X3

    Logistic Regression When Dependent


    Variable is qualitative (Yes/No, M/F etc)

    Linearity
    Linearity in Variables
    Y = a+bX
    Y a bX cX 2 de X
    (Non Linear in
    Variables but Linear in Parameters)

    Linearity in Parameters
    Y = a+bX

    Y a bX cX 2 de X
    Y a b2 X
    (Non Linear in parameters but
    Linear in Variables)

    Population Regression
    Function
    Passes through condition means E(Y|
    X i)
    E(Y|Xi) = f(Xi)
    Considering
    E (Y | X ) Linearity
    X
    i

    Yi 1 2 X i u i
    Y

    (continued)

    Y f(x)
    ui

    Slope = 1
    Random Error for this
    x value

    Predicted
    Value
    of Y for Xi

    Intercept
    = 0

    xi

    Individual
    person's
    marks

    X
    10

    Sample Regression Function


    We dont have population
    instead we have random
    samples
    For a sample from the
    population, SRF is created

    Yi 1 2 X i
    For many such samples
    many
    SRFs
    can
    be
    created

    u
    Yi Y
    i
    i
    (continued)

    Yi 1 2 X i ui

    Observed
    Value
    of y for xi

    ui

    Slope = 1
    Random Error for this
    x value

    Predicted
    Value
    of Y for Xi

    Intercept
    = 0

    xi

    X
    12

    Our Objective
    So our objective is to
    Estimate the PRF

    Yi 1 2 X i u i

    On the basis of SRF

    Yi 1 2 X i ui

    We have to construct an SRF to


    mirror PRF as faithfully as possible or
    the best approximation

    Ordinary Least Square


    From our SRF equation we have:
    ui Yi 1 2 X i

    u i is stochastic error term or


    Residual
    We construct SRF to that it is as close
    as possible
    to Y,(Ywhich
    Min u
    Y ) means

    But Min
    we dou 2 (Y Y ) 2
    i i i

    Min ui

    (Yi Yi )

    Min ui

    (Yi 1 2 X i )

    On solving these equation for parameters

    ( X X )(Y Y )
    (X X )
    i

    and
    1 Y 2 X
    1 and2 are called least square

    estimators of population estimators

    Example Using R
    Regression.R

    Regression.R

    Residual Plots

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