MIS171 Lecture Notes - Lecture 6: Simple Linear Regression, Simple Random Sample, Regression Analysis

• School: Deakin University
• Department: Business and Law
• Course: MIS171
• Professor: All

Document Summary

Topic 6: predictive models part 2: multiple linear regression. The estimated simple linear regression equation, is given by: X is the independent variable b0 is the y-intercept b1 is the slope of the line. A simple random sample is used to compute sample statistics b0, b1,b2, . bk that are used as the point estimators of the parameters. A sample of 20 management staff members are randomly selected. A suggestion was made that regression analysis could be used to determine if salary was related to the years of experience and the score o(cid:374) the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s aptitude test. The years of experience, score on the aptitude test, and corresponding annual salar(cid:455) (cid:894)(cid:1004)(cid:1004)(cid:1004)s(cid:895) for a sa(cid:373)ple of (cid:1006)(cid:1004) (cid:373)a(cid:374)age(cid:373)e(cid:374)t staff (cid:373)e(cid:373)(cid:271)ers is sho(cid:449)(cid:374) o(cid:374) the next slide. At the completion of this topic, you should be able to: Develop a multiple regression model with a categorical independent variable. Explain regression model understanding multicollinearity in a the importance of.