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x y
Correlation Coefficient – r
xy n
r
This tells us the strength of correlation and whether it is a x 2 2 y 2
x 2
negative or positive correlation
n
y n
x y
β = Regression Coefficient (y on x) – represents the
xy n
slope of the line x 2
x 2
n
α = Intercept (y on x) – Value of y when x = 0
y x Regression Equation of y on x y x
x = Average of x y = Average of y
yx
x y
β = Regression Coefficient (of x based on y) –
xy n
represents the slope of the line y 2
y 2
n
x y
α = Intercept – Value of x when y = 0 Regression Equation of x on y: x y
xy
Mathematics grade 70 92 80 74 65 83
English grade 74 84 63 87 78 90
Firstly, Rank the items, with 1 being the highest and 6 being the lowest, then subtract x from y (y-x) to get d and
square each value.
Mathematics grade 5 1 3 4 6 2
English grade 5 3 6 2 4 1
d 0 2 3 -2 -2 -1 ∑d2
d2 0 4 9 4 4 1 22
6 d 2
rs 1
n n2 1
Where d represents the difference in ranks and n is the sample size
This prediction is biased, as we are extrapolation outside of the useful range as the lowest value was x. We can’t
be sure that this model is accurate at y therefore.
Curvilinear Regression Transformation Guide
y e x y x y x 1
Transform this exponential function Transform this function Transform this function
Get the Natural log ln of both sides Get the log of both sides Get the reciprocal
y e x y x 1
y
ln y ln ln e x
log y log x
x
ln y ln x. ln(e) log y log log x Other possible transformations:
ln y ln x log y log log x x
ln y ln x
Example: Apply a suitable transformation of the exponential function so that Linear Regression techniques can be applied.
x ln y
x ln y n
r
Correlation Coefficient – r x
x 2
2
ln y 2 ln y
2
n n
x ln y
x ln y n
β = Regression Coefficient (of y based on x) – represents the slope of the line
x 2
x 2
n
ln y x
α = Intercept – Value of lny when x = 0 Regression Equation: ln y x
ln y x
ln y x
Now we need to transform it back from the Natural Log of y lny to y:
y ex