Correlation coefficient
Regression estimated value
Regression estimated value
Summation of all x
Summation of all x
Summation of all x
Regression coefficient
Regression estimated value x
Regression estimated value x
Regression estimated value y
Linear regression
•
The Linear regression formula is in relation to two variables:
y = A + Bx
•
Example: By the following investment and yield table, calculate
the linear regression (regression coefficient A, regression
coefficient B) of capital investment verse yield, the correlation
coefficient, the yield percentage at 45 thousand unit of
investment, and the investment unit at 180% yield.
Investment (thousand unit)
For non-quadratic regression
For Quadratic regression only
3
values
2
y pairs
4
values
1
2
20
30
40
50
60
r
x
y
3
x
2
x
y
4
x
C
x
1
x
2
y
Yield (%)
36
120
126
130
136
141