Lesson 9: Regression Output Interpretation

February 28, 2016

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Mon, Feb 29

Review:

• Multiple Regression

Presentation:

• Regression Output Interpretation
  • From Last Time
    • R-Squared
    • Regression Equation Coefficients
  • New Stuff
    • t-Stat and p-values for Independent Variables significance
    • F statistic and p-value (Significance F) for Overall Model significance
    • ANOVA table Sum of Squares values (SSR, SSE, SSyy)
      • SSR = b1^2*SSxx
      • SSE = Sum of Squares residuals
      • SSyy = Sum of Squares of y

Activity:

• Read Demonstration Problem 13.1 on p. 528-529
• Use the Regression Summary Output table on p. 529 to answer these questions.
  • What is the R-Squared value?
  • How many observations are in the data set being analyzed?
  • Name the variables and their corresponding coefficients.
  • What are the t-stat values for each independent variable?
  • What are the p-values for each independent variable?
  • Which variable is the most significant?
  • What is the F statistic for the model?
  • What is the significance level of the F statistic?
  • What is SSE, the Sum of Squares Error?
  • What is SSyy, the Sum of Squares for y?
  • What is SSR, the Sum of Squares Regression?

Assignment:

• Read p. 541-543 Interpreting Multiple Regression Output
• Download Excel data provided as a companion to the textbook: black_7e_excel_database
• Complete the “Analyzing the Database” Problems 1-4 on p. 549 
• Don’t worry about the discussion questions. Instead, produce the models specified and then answer the same “Activity” questions above for each resulting set of Regression Output.