REGRESSION PROCEDURES AND STEPS

Note: To copy from JMP, choose the Selection button and highlight the area. Then copy and paste. After data is in JMP, create Descriptive Statistics and a Correlation Matrix of your variables Tables Tabulate, drag statistics you want to column section and variables to row section. Analyze Multivariate Methods Multivariate, select all the variables (usually put the Y first) into the Y, Columns section. Run a regression using all the variables you have available Analyze Fit Model, enter the variable youre predicting as the Y variable and all other variables as X variables in the Construct Model Effects section using Add. Hit Run. If you have a categorical variable with p levels, JMP will create p 1 dummy variables and include them in the model because of multicollinearity.

Regression Diagnostics 1. Is the F statistic significant? Check p-value (Prob>F) below the F Ratio to make sure it is < 0.05 2. Are the VIF values all below 10? In the Parameter Estimates table, hover over one of your numerical results. Right-click, choose Columns and make sure the VIF option is checked. If some are above 10, start deleting them one at a time. 3. Is the Residual vs Fitted plot homoscedastic? To check this: Scroll down below your general Regression results to the Residual by Predicted Plot. (if the plot isnt visible, click on the red triangle in the top left of your output and select the Row Diagnostics, then Plot Residual by Predicted) If not, try the natural log of the Y variable by creating a new column and double clicking. Column Properties Formula, then click on Edit Formula. Choose the Log function from the right (under Functions All if you cant find it), then select the Table Column from the left that you want to transform.

Y = b + b X : A one-unit increase in X1 corresponds to a 100*b1 percent increase in Y. *Interpretation of ln 0 1 1

4. Are all p-values below 0.05? If not, start deleting the variables one at a time 5. Are there any outliers? Click on the red triangle next to Response in your output window. Choose Save Columns Cooks D Influence. Cautiously consider deleting observations if Cooks Distance value is > 4/n Create a Prediction Interval for an estimate after plugging in values for all variables into equation

95% PI ( e s tim ate ) :Y tnk1,

95%CI ( s lo p e ) :bi tnk1,
2

( S)

Create Confidence Intervals for value of each variables slope

b 1

from the Regression Reports section of the main drop-down menu.

( SE ) , also able to be found by selecting Show All Confidence Reports

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