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Chapter 7Linear Regression
D. Raffle
5/27/2015
Chapter 7 http://stat.wvu.edu/~draffle/111/week2/ch7/ch7.h...
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Review
In Chapter 7, we saw:
Where do we go from here?
Scatterplots can show us relationships between two numeric variables.
Correlation describes the strength and direction of linear relationshipsbetween two numeric variables.
We call the variable the explanatory variable, because it explains the variable.
We call the variable the response because it responds to changes in .
·
·
· X Y
· Y X
If correlation tells us how well the points fit around a line, what line do they fitaround?
How can we use this line to describe the relationship further?
Can we use it to make predictions?
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Fuel Efficiency vs. Weight
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Fuel Efficiency vs. Weight
What can we see?
What else might we want to do?
There is a fairly strong negative linear relationship between the weight of a carand its fuel efficiency
As we increase the weight of a car, the fuel efficiency tends to decrease.
· r = −0.87·
·
Describe the general trend with a line
Make a prediction of what the fuel efficiency of a car weighing 4500 lbs is.
·
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The Line of Best Fit
So how do we find the line the best describes the general trend?
The most commonly used method is called the least squares regression (LSR).
The least squares regression line is the line that comes closest to all of thepoints simultaneously.
At any value of the variable, the line is our prediction for the mean orexpected value of the variable.
This lets us analyze values of given that we know what is.
·
·
· XY
· Y X
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Fuel Efficiency vs. Weight
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The Linear Model
Defining Least Squares Regression:
LSR is a linear model
A mathematical model is just a formula that describes something in the realworld (e.g., Area = Base Height)
A statistical model does the same thing, but it accounts for variability oruncertainty (e.g., The Normal Model)
LSR calculates the best possible line to describe the overall trend between ourvariables from our data
·
·×
·
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The Least Squares Line
Recall from algebra that we can describe a line using the formula:
In statistics, we use the same method with different, but we label thingsdifferently:
What do the terms mean?
· y = mx + b
· = + xy b0 b1
is the slope
is the y-intercept
is our prediction for the mean of when
· b1 (m)· b0 (b)· y Y X = x
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Algebra Review: Lines
Consider the line:
What do the coefficients tell us?
= 1 + 2xy
x = 1 + 2xy y
0 = 1 + 2(0)y 1
1 = 1 + 2(1)y 3
2 = 1 + 2(2)y 5
tells us the value of when
tells us that every time goes up by one unit, increases by
· = 1b0 y X = 0· = 2b1 X y 2
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Fuel Efficiency vs. Weight
For our car data set, the regression line is:
What does this tell us? Keep in mind that weight is in thousands of pounds.
This brings up an important note:
= 37.2851 − 5.3445wtmpg
For every added 1000 pounds of weight, fuel efficiency drops by milesper gallon
If a car weighs 0 lbs, it's predicted efficiency is mpg
· 5.3445
· 37.285
A car can't weigh 0 lbs.
In statistics, the y-intercept is often not interpretable, we just use it to drawthe line and make predictions.
·
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Fuel Efficiency vs. Weight
If a car weighed lbs, what would we expect its efficiency to be?
How do we interpret this?
= 37.2851 − 5.3445wtmpg
4500
· = 37.28511 − 5.3445(4.5)mpg
· = 37.285 − 24.05mpg
· = 13.23mpg
We predict that the average car weighing lbs gets mpg· 4500 13.23
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Residuals
We said the the Least Squares Regression line doesn't hit every point in ourscatterplot, so how can we tell how well it does?
For each point , we predict the value
For every observation we have, we can see how far off we were by finding theresidual
For a given , the residual is:
This is the vertical distance between the line and the true value of .
If our estimate was too high, the residual will be negative
If our estimate was too low, the residual will be positive
· (x, y) (x, )y
·
· x y − y
· y
·
·
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Residuals: Example
Let's pick on car in our data set, the Camaro Z28. This car gets mpg andweighs lbs.
So how'd we do?
13.33840
· = 37.2851 − 5.34455wtmpg
· = 37.2851 − 5.3445(3.84)mpg
· = 37.2851 − 20.5228mpg
· = 16.76mpg
We overestimated by 3.46 mpg
· mpg − = 13.3 − 16.76 = −3.46mpg
·
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Residuals: Example
Let's pick another car, the Fiat 128. It's efficiency is mpg and it weights lbs.
So how'd we do?
32.42200
· = 37.2851 − 5.34455wtmpg
· = 37.2851 − 5.3445(2.2)mpg
· = 37.2851 − 11.76mpg
· = 25.53mpg
The model underestimated by 6.87 mpg
· mpg − = 32.4 − 25.53 = 6.87mpg
·
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Residuals in Reverse
Imagine you bought a car that weighs pounds, and I told you the residualwas . What was the car's fuel efficiency?
2780−1.03
· mpg − = −1.03mpg
· = 37.2851 − 5.34455wtmpg
· = 37.2851 − 5.3445(2.78)mpg
· = 37.2851 − 14.86mpg
· = 22.43mpg
· mpg − 22.43 = −1.03· mpg = −1.03 + 22.43 = 21.4
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Visualizing Residuals
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The Least Squares Line
We've seen how to check the prediction for a single value, but how do we knowwe did the best we could?
We call our line the Least Squares Regression line because it:
The LSR line comes the closest to all of the points simultaneously
It does this by finding the line which has the smallest residuals overall
Since negative residuals are just as important as positive ones, we squarethem to force them to be positive
Because of this, we focus on the squared residuals
·
·
·
·
Minimizes the sum of the squared residuals
This means that it minimizes the sum of the squared vertical distancesbetween the points and the line.
·
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Relationship to Correlation
Recall:
Because of this,
Correlation is the strength of the linear relationship between and .
The direction of the relationship is indicated by the sign of
· X Y
· −1 ≤ r ≤ 1· r
The sign of will always match the sign of .· r b1
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Measure of Fit:
In order to evaluate how good the model is, we need a measurement of how wellit fits. For this, we use the statistic.
So what is ?
R2
R2
is the fraction of the variability in the response variable exlained bythe variable.
Do changes in explain changes in ?
· R2 (Y )X
· X Y
R2
If we only have one variable,
If , knowing lets us perfectly predict
If , tells us nothing about
· X =R2 r2
· −1 ≤ r ≤ 1 → 0 ≤ ≤ 1R2
· = 1R2 X Y
· = 0R2 X Y
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Fuel Efficiency vs. Weight
What is the of our model that predicts fuel efficiency from weight?R2
, there is a strong negative correlation
So the weight of cars explains 76% of the variability in their fuel efficiency
This makes sense, obviously other properties (number of cylinders,transmission, design, etc.) will play a role in a car's fuel efficiency
· r = −0.87· = (−0.87R2 )2
· = 0.76R2
·
·
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Units in Regression
In Correlation:
In Regression:
The correlation coefficient has no units
Changes in units (e.g., lbs kg) had no effect on
·
· → r
The slope is "rise over run", or "change in over change in "
The slope is measured in units of over units of
Changing units can significantly change our line
· Y X
· Y X
·
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Fuel Efficiency vs. Weight: Changes in Units
So far, we've been measuring the weight in 1000s of pounds
What if we represented the weight directly in pounds?
This represents how much the fuel efficiency in mpg changes when weincrease weight by 1000 pounds
· = −5.3445b1
·
The same relationship needs to exist, so changing the weight by 1000 poundsstill needs to move mpg down by 5.3445
In order for this to be true, the slope needs to be divided by 1000
So changing increasing the weight by a single pound decreases mpg by0.0053445.
·
·
· = −5.3445/1000 = −0.0053445b1
·
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Regression: Outliers
How do outliers affect regression?
If they're above or below the line (extreme in ):
If they fall along the line, but are extreme in
Y
They can affect the slope drastically
They can decrease
·
· R2
X
They can inflate and make us think the relationship is stronger than itreally is
· R2
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Fuel Efficiency vs. Weight
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Fuel Efficiency vs. Weight
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Horsepower vs. Engine Displacement
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Horsepower vs. Engine Displacement
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Using StatCrunch
To do regression in StatCrunch:
Stat Regression Simple Linear1.
X Variable Select your explanatory variable2.
Y Variable Select your response3.
→ →→→
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StatCrunch: Regression Results
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StatCrunch: Regression Results
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Extending Regression: Multiple 's
Why do statisticians use instead of ?
X
= + xy b0 b1 y = mx + b
Because we can also try to use multiple variables to predict a single
For example, we could use mothers' and fathers' heights to find a model forthei childens' heights
This is called multiple regression
then takes all of the variables into account
· X Y
·
· = + (mother) + (father)child'sˆ b0 b1 b2
·
· R2 X
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Extending Regression: Variable Types
Categorical Variables can be used in regression using what are called dummyvariables. Say we wanted to use gender to predict height.
If we had a model
This is often done in medical trials, especially in multiple regression.
Let if the person is male
Let if the person is female
· x = 0· x = 1
= 5.7ft − 0.25xh
if a person is male
if a person is female
· = 5.7ft − 0.25(0) = 5.7fth
· = 5.7ft − 0.25(1) = 5.45fth
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Summary
We can describe the linear relationship between two numeric variables withLeast Squares Regression
We get predictions for a value of the explanatory variable by plugging its valuein for in the line equation
The prediction is our estimation of the average response for that value of
A residual is the distance from the true value of we observed from theprediction
The Least Squares regression line minimizes the sum of the squared residuals
is the fraction (or percent) of the variability in the response explained bythe regression model
Outliers can have a significant effect on the slope of the line and
·
·x
· X
· Y
·
· R2
· R2
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