NOTE: For these questions, the y and x variables have been identified for you. This will not always be the case. You will be expected to know how to determine y and x from the wording of the problem. Question #1: Find the regression equation for predicting 'final score' from 'midterm score' where y is 'final score' and x is 'midterm score'. The following sample statistics have been computed: midterm score: average=70; standard deviation=10 final score: average=55; standard deviation=20 r=0.60 Solution: We first compute the slope and then determine the intercept. slope = 0.60*(20/10) = 1.2 Since (xbar, ybar), that is (70, 55), is on the regression line we can plug these values into the regression equation and solve for the intercept: 55 = a + 1.2(70) a = 55 - 84 = -29 Therefore the regression equation is: final score = 1.2(midterm score) - 29 The interpretation of these coefficients follows: SLOPE:- For unit increase in midterm score an increase of 1.2 points can be expected in final score. INTERCEPT:- When midterm score is zero final score is -29. This is not meaningful. Question #2: For men age 25-34 in the HANES sample, sample statistics for height and income are given below. Let y be income and x height. height: average=70in; standard deviation=3in income: average=$29,800; standard deviation=$14,400 r=0.20 Solution: The approach is the same. In this case income is y and height is x: slope = 0.20*(14400/3) = 960 Since (xbar, ybar), that is (70, 29800), is on the regression line we can plug these values into the regression equation and solve for the intercept: 29800 = a + 960(70) a = 29800 - 67200 = -37400 Therefore the regression equation is: income = 960(height) - 37400 Typically you would interpret the coefficients as follows: SLOPE:- For unit increase in the height of men age 25-34 an increase of $960 can be expected in income. INTERCEPT:- When height is zero income is $-37400. This is clearly not meaningful. However by thinking carefully about the problem, not only is the intercept not meaningful, but the relationship between height and income is spurious. Also, note the low correlation. This essentially means that only 4% of the variability in income is explained by height. Given this fact, it is reasonable to conclude that this functional relationship is not useful.