Lesson 5: Residual Analysis and R-Squared

2
January 30, 2016 at 1:43 pm  •  Posted in s16-busad360 by  •  2 Comments

Previous | Next

Mon, Feb 1

Review:

  • Simple Regression
  • Problem solutions – use odd number textbook problems to practice
  • Exam 1 on Wed, Feb 17

Presentation:

  • Residual Analysis
    • Individual Residuals
    • Residual Plot(s)
    • Residual Sum of Squares (SSE) = ∑(y – y-hat)²
    • Total Sum of Squares (SSyy) = ∑y² – (∑y)²/n
    • Coefficient of Determination
      • r-squared = 1 – SSE/SSyy
      • Relationship to Pearson Correlation Coefficient

Activity:

  • Use data from Problems 12.2 (p. 474) and 12.6 (p. 481)
    • Calculate and plot residuals
    • Calculate SSE
    • Calculate r-squared
    • Scatter Plot of Actual (y) vs Predicted (y-hat)

Assignment:

  • Repeat the Activity (12.2 & 12.6) in Sheets
  • Use your 10 countries GDP and Fertility data to complete the following in Sheets
    • Calculate and plot residuals
    • Calculate r-squared
    • Scatter Plot of Actual (y) vs Predicted (y-hat)

Leave a Reply