To Accompany Business Statistics A Decision Making Approach 8th Ed Chapter 14 Introduction to Linear Regression and Correlation Analysis By Groebner Shannon Fry amp Smith PrenticeHall Publishing Company ID: 437194
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Guide to Using Minitab 14 For Basic Statistical Applications
To AccompanyBusiness Statistics: A Decision Making Approach, 8th Ed.Chapter 14:Introduction to Linear Regression and Correlation AnalysisByGroebner, Shannon, Fry, & SmithPrentice-Hall Publishing CompanyCopyright, 2011Slide2
Chapter 14 Minitab Examples
Correlation Analysis Midwest DistributionRegression Analysis Fitzpatrick and AssociatesSimple Linear Regression Analysis VantageRegression Analysis for Decision-Making Car MileageRegression Analysis for Prediction Freedom HospitalResidual Analysis Freedom HospitalSlide3
Correlation Analysis - Midwest Distribution
Issue: The company wants to analyze the relationship between salary and years with the company.Objective: Use Minitab to help test whether a significant relations exists between salary and years with the company. Data file is Midwest.MTWSlide4
Open File
Midwest.MTWCorrelation Analysis – Midwest Distribution.Slide5
Click on
Graph – ScatterplotCorrelation Analysis – Midwest Distribution.Slide6
Select
SimpleCorrelation Analysis – Midwest Distribution.Slide7
Identify Y and X variables, click
OKCorrelation Analysis – Midwest Distribution.Slide8
Scatterplot shows a positive linear relationship.
Correlation Analysis – Midwest Distribution.Slide9
First click on
Stat, then Basic Statistics and finally on Correlation.Correlation Analysis – Midwest DistributionSlide10
Identify the columns containing the data to be analyzed. Click on
OKCorrelation Analysis – Midwest DistributionSlide11
The Minitab output shows the
correlation between Sales and Years with Midwest.Correlation Analysis – Midwest DistributionSlide12
Regression Analysis
Fitzpatrick & Associates.Issue: The Fitzpatrick analysts want to model the relationship between profits and number of employees. Objective: Use Minitab to test whether the apparent linear relationship is statistically significant. Data file is Fortune 50.MTWSlide13
Open File
Fortune 50.MTWRegression Analysis – Fitzpatrick & AssociatesSlide14
Click on
Graph button, then ScatterplotRegression Analysis – Fitzpatrick & AssociatesSlide15
Select
SimpleRegression Analysis – Fitzpatrick & AssociatesSlide16
Identify the columns containing the
variables to be graphed.Regression Analysis – Fitzpatrick & AssociatesSlide17
Minitab provides the scatter plot.
Regression Analysis – Fitzpatrick & AssociatesSlide18
Click on
Stat, then Regression and Regression again.Regression Analysis – Fitzpatrick & AssociatesSlide19
Identify the columns containing values of Profits
(Response) and Employees (Predictors). Click on OKRegression Analysis – Fitzpatrick & AssociatesSlide20
The output shows the
R-square value and the regression equation.Regression Analysis – Fitzpatrick & AssociatesSlide21
Simple Linear Regression Analysis - Vantage Electronic Systems
Issue: The R&D Department at Vantage wishes to determine if knowing the Vantage visibility reading provides useful help in knowing what its Scorpion sensor’s visibility reading will be.Objective: Use Minitab to determine the significance of a simple linear regression model using the Vantage visibility measure to predict the Scorpion measure. Data file is Vantage.MTWSlide22
Open File
Vantage.MTWFile contains data for 280 sensor readings.Simple Linear Regression Analysis – VantageSlide23
Click on
Stat, then Regression and Regression again.Simple Linear Regression Analysis – VantageSlide24
Identify the columns containing values of Scorpion Visibility
(Response) and Vantage Visibility(Predictors)Simple Linear Regression Analysis – VantageSlide25
Test statistic and p-value to test the hypothesis that the slope equals 0
Simple Linear Regression Analysis – VantageSlide26
Regression Analysis for Decision-Making - Car Mileage
Issue: Analysts at a major automobile company were interested in establishing the relationship between horsepower and highway mileage. Initially, they wished to determine how much the average miles per gallon will decrease if the horsepower of a randomly selected automobile were to be increased by one horsepower. Objective: Use Minitab to develop a range of plausible miles per gallon resulting from an increase of one horsepower of an automobile’s engine.Data file is Automobiles.MTWSlide27
Open File
Automobiles.MTWRegression Analysis for Decision-Making – Car MileageSlide28
Click on
Stat, then Regression and Regression again.Regression Analysis for Decision-Making – Car MileageSlide29
Identify the columns containing values of Highway mileage
(Response) and Horsepower (Predictor) . Regression Analysis for Decision-Making – Car MileageSlide30
Regression Analysis for Decision-Making – Car Mileage
Test statistic and p-value to test the hypothesis that the slope equals 0Slide31
Regression Analysis for Prediciton - Freedom Hospital
Issue: The administrator has been requested by the hospital’s board of directors to develop a model that can be used to predict the total charges for a geriatric patient, as an example, a five-day stay. Objective: Use Minitab to develop a statistically significant prediction model. Data file is Patients.MTWSlide32
Open File
Patients.MTWFile contains data for 138 patients.Regression Analysis for Prediction – Freedom HospitalSlide33
Click on
Stat, then Regression and Regression again.Regression Analysis for Prediction – Freedom HospitalSlide34
Identify the columns containing values of Total Charges
(Response) and Length of Stay (Predictors) and finally Options. Regression Analysis for Prediction – Freedom HospitalSlide35
Specify value of x used to predict the y variable – specify confidence level. Click OK
Regression Analysis for Prediction – Freedom HospitalSlide36
95% prediction interval
Regression Analysis for Prediction – Freedom Hospital