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Bivariate Regression Regression analysis is a powerful and commonly used tool in

ID: 2637689 • Letter: B

Question

Bivariate Regression

Regression analysis is a powerful and commonly used tool in business research. One important step in regression is to determine the dependent and independent variable(s).

In a bivariate regression, which variable is the dependent variable and which one is the independent variable?

What does the intercept of a regression tell? What does the slope of a regression tell?

What are some of the main uses of a regression?

Provide an example of a situation wherein a bivariate regression would be a good choice for analyzing data.

Justify your answers using examples and reasoning. Comment on the postings of at least two peers and state whether you agree or disagree with their views.

Types of Regression Analyses

There are two major types of regression analysissimple and multiple regression analysis. Both types consist of dependent and independent variables. Simple linear regression has two variablesdependent and independent. Multiple regression consists of dependent variable and two or more independent variables.

How does a multiple regression compare with a simple linear regression?

What are the various ways to determine what variables should be included in a multiple regression equation?

Compare and contrast the following processes: forward selection, backward elimination, and stepwise selection.

Justify your answers using examples and reasoning.

Bivariate Regression

Regression analysis is a powerful and commonly used tool in business research. One important step in regression is to determine the dependent and independent variable(s).

In a bivariate regression, which variable is the dependent variable and which one is the independent variable?

What does the intercept of a regression tell? What does the slope of a regression tell?

What are some of the main uses of a regression?

Provide an example of a situation wherein a bivariate regression would be a good choice for analyzing data.

Justify your answers using examples and reasoning. Comment on the postings of at least two peers and state whether you agree or disagree with their views.

Types of Regression Analyses

There are two major types of regression analysissimple and multiple regression analysis. Both types consist of dependent and independent variables. Simple linear regression has two variablesdependent and independent. Multiple regression consists of dependent variable and two or more independent variables.

How does a multiple regression compare with a simple linear regression?

What are the various ways to determine what variables should be included in a multiple regression equation?

Compare and contrast the following processes: forward selection, backward elimination, and stepwise selection.

Justify your answers using examples and reasoning.


Explanation / Answer

The intercept of the regression line is its height when x = 0, corresponding to men with 0 years of education. Such men are 12.5 years below average in education. And each year costs $1,400-that is what the slope says. A man with no education is predicted to have an income which is below average by

12.5 years x $1,400 per year = $17,500.

So, his income is predicted as $19,700 - $17,500 = $2,200. This is the intercept: the predicted value of y when x = 0. (See figure 3.)

Zero years of education may sound extreme, but there were several men who reported having no education, and their incomes ranged from $0 to about $12,000; their points are in the lower left corner of figure 1.

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Associated with each unit increase in x there is some average change in y. The slope of the regression line says how much this change is. The formula for the slope is

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