DEPARTMENT OF TECHNICAL DUCATION

ANDHRA PRADESH
Name : M.L.Kameswari.
Designation : Sr. Lecturer
Branch : Commercial and Computer
Practice
Institute : Govt. Polytechnic for women ,
Bheemunipatnam.
Year/Semester : IV semester.
Subject : Quantitative Techniques-II
Sub. Code : CCP 403
Topic : Regression equations and
regression coefficients
Duration : 100 Minutes
Sub-topic : Calculation of regression
equation through normal
equations
CCP 403.23 TO 24 1
Teaching Aids : PPT.
OBJECTIVES

On completion of this period, you would

be able to
 understand the methods of Calculating
Regression Equations through Normal
Equations

CCP 403.23 TO 24 2
RECAP

 In the last class we have discussed about the

 Regression lines,
 Regression equations
 Method of drawing various types of Regression
lines.

CCP 403.23 TO 24 3
Regression Equation of Y on X

It is expressed as
Y = a + bX
Here Y is a dependent variable
X is a independent variable

If ‘X’ value is given Y value can be computed

a = Y intercept (Point where RL crosses Y axis)

b = Slope of line
Both ‘a’ and ‘b’ are numerical constants

CCP 403.23 TO 24 4
Regression Equation of X on Y

It is expressed as
X = a + bY
Here X is a dependent variable
Y is a independent variable

If ‘Y’ value is given X value can be computed

a = X intercept (Point where RL crosses X axis)

b = Slope of line
Both ‘a’ and ‘b’ are numerical constants

CCP 403.23 TO 24 5
REGRESSION EQUATION THROUGH
NORMAL EQUATIONS

 The two main equations in Regression

Analysis are
(i) x on y
(ii) y on x
 Equation for ‘X on Y’
Xc = a +bY
 Equation for ‘Y on X’
Yc = a +bX

CCP 403.23 TO 24 6
 Regression Equations

In the equations,
 Parameter ‘a’ indicates Regression Line (intercept)
 Parameter ‘b’ determines Regression Line
 Corresponding change in ‘x’ in relation to ‘y’ and
vice-versa

CCP 403.23 TO 24 7
Regression Equation of Y on X

 Written as Yc =a+ bX
 To determine values of ‘a’ and ‘b’ we solve two
normal equations simultaneously
 Given Y c=a +bX ……. (i)

CCP 403.23 TO 24 8
Regression Equation of Y on X

By solving the Equation (i) with algebra and

differential calculus,
 ∑Y=Na+ b∑X -(ii)
 Now multiply the whole equation (ii) by X;
we get ∑XY = a∑X+b∑X2 (iii)
 Equation (ii) and (iii) are called Normal

Equations
CCP 403.23 TO 24 9
REGRESSION EQUATION OF X ON Y

 Written as XC =a +bY -(i)

 ∑X =Na +b∑Y -(ii)
 Multiply Equation (ii) by Y, we get
 ∑XY=a∑Y+b∑Y2 -(iii)
 Equation (ii) and (iii) are called
Normal Equations

CCP 403.23 TO 24 10
Calculation of Regression Equations
Steps

 Square values of X series and obtain total, denote

it as ∑X2

 Square values of Y series and obtain total, denote

it as ∑Y2

 Multiply values of X and Y series, obtain total and

denote it as ∑XY

 Substitute values in formula

CCP 403.23 TO 24 11
 EXERCISE - I

 From the given Bivariate data

 (a) Fit Regression Equation of Y on X
and Predict Y if X=20
 (b) Fit Regression Equation of X on Y
and Predict X if Y=5

x 2 6 4 3 2 2 8 4

y 7 2 1 1 2 3 2 6

CCP 403.23 TO 24 12
SOLUTION TO Ex. 1
Calculation of Regression Equations

X Y X2 Y2 XY
2 7 4 49 14
6 2 36 4 12
4 1 16 1 4
3 1 9 1 3
2 2 4 4 4
2 3 4 9 6
8 2 64 4 16
4 6 16 36 24
∑X=31 ∑Y=24 ∑X2=153 ∑Y2=108 ∑XY=83

CCP 403.23 TO 24 13
 Solution Contd

 In order to find the values of a and b,

 Solve two equations simultaneously.

 ∑Y = Na + b∑X (1)

 ∑XY=a∑X+b∑X2 (2)

CCP 403.23 TO 24 14
Solution Contd

 Substitute values in (1) & (2)

 24 =8a+31b

 83 =31a+153b

CCP 403.23 TO 24 15
Solution Contd

 Multiply eq(i) by 31 and eq(ii) by 8, we get

744=248a+961b –(iii)
644=248a+1224b-(iv)

CCP 403.23 TO 24 16
Solution Contd….

 Substitute (iii) from (iv)

248a+1224b=664
248a+961b =744
263b = -80
b= -80 = -0.30 Approx
263

CCP 403.23 TO 24 17
Solution Contd

 Substitute ‘b’ value in eq(i),

24 = 8a + 31( -0.30)
24 = 8a - 9.3
8a = 33.3
a = 33.3 =4.1625
8

CCP 403.23 TO 24 18
Solution Contd….

 Thus Regression Equation of ‘Y’ on ‘X’is

 Y = a + bx
 Y = 4.1625 – 0.30X

CCP 403.23 TO 24 19
 Solution Contd

 Similarly let us solve the second Regression equation

 Simultaneous equations method.

CCP 403.23 TO 24 20
Solution Contd

 Regression Equation of X on Y is
 X = a + bY

 Normal Equations
 ∑X = Na + b∑Y (1)
 ∑XY= a∑Y+b∑Y2 (2)

CCP 403.23 TO 24 21
Solution Contd

 Substitute values in Eq (i) and (ii)

31= 8a+ 24b – (i)
83=24a+108b – (ii)
 Multiply eq (i) with 3 and
 Subtract eq (ii) from (i) we get

CCP 403.23 TO 24 22
Solution Contd

93=24a+ 72b –(iii)

83=24a+108b –(iv)

10= -36b

b= -10/36 =-5/18= -0.28 Approx

CCP 403.23 TO 24 23
Solution Contd

 Substitute value of B in eq (i)

8a + 24(-0.28) = 31
8a - 6.72 = 31
8a = 31 + 6.72
a = 37.72/8 = 4.715
 The regression of X on Y is
X = 4.715 - 0.284Y

CCP 403.23 TO 24 24
Solution Contd

a) Now let us predict the value of Y if X=20

Regression equation of Y on X is
Y=4.1625 - 0.30X
Y=4.1625 - 0.30(20)
Y=4.1625 - 6.00
Y= - 1.8375

CCP 403.23 TO 24 25
Solution Contd

b) Now let us predict X if Y=5

 Regression equation of X on Y is
X = a + by
X=4.715 – 0.28(5)
X=4.715 – 1.40
X=3.315

CCP 403.23 TO 24 26
Summary

 This Method involves more Calculations. Hence it

consumes more time.
 If the data given is in fractions it is very tedious to find
out Regression Equation in this Method.
 This method is not in much in use.

CCP 403.23 TO 24 27
 Quiz

1. The regression equation X on Y is shown as

• X = a + bY

• Y = a + bX

• ∑X = a + b ∑Y

• ∑XY = a N + b ∑Y2

CCP 403.23 TO 24 28
Quiz

2. The regression equation Y on X is

shown as
• Y = a + bY

• Y = a + bX

• Y = Na + b ∑X

• None of these

CCP 403.23 TO 24 29
Quiz

3. In the equation Y = a + bx, a is ________?

1) Intercept

3) Slope

5) None of the above

CCP 403.23 TO 24 30
 Quiz

4. In the equation Y = a + bx, b is ________?

1) Slope of trend line

3) Intersection

5) None of the above

CCP 403.23 TO 24 31
FREQUENTLY ASKED QUESTIONS

 1. What are regression lines (DCCP 4 sem, Mar

2007, 6marks)
 2. State the regression equations X on Y and Y
on X

CCP 403.23 TO 24 32