Linear Regression Example

 

Task:

Based on the findings of two random variables, find the linear regression of X on Y and the selective correlation coefficient.

Solution:

Let’s build a correlation field:

We can assume a linear relationship between these values.

Let’s construct a table of calculated data for the evaluation of the linear regression:

Let’s find the parameters of the linear regression:

Thus, the regression equation is:

We can make a conclusion that by increasing x value on 1, y will increase on 1,25.

Let’s find selective correlation coefficient:

The correlation coefficient is close to 1, so the relationship between the factors is strong.

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