## Lesson 5: Residual Analysis and R-Squared

January 30, 2016

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)

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