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    Linear Regression

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    rupal patidar
    Multiple regression analysis is used to predict the value of a dependent variable based on the values of two or more independent variables. It assumes variables have a linear relationship, no multicollinearity or autocorrelation, homoscedasticity, and the dependent variable is normally distributed. Diagnostic tests check for outliers, normality, linear relationships between variables, multicollinearity, autocorrelation, and homoscedasticity. The sample size should be at least 20 cases per independent variable.

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    Linear Regression

    Uploaded by

    rupal patidar
    26 views12 pages
    Multiple regression analysis is used to predict the value of a dependent variable based on the values of two or more independent variables. It assumes variables have a linear relationship, no multicollinearity or autocorrelation, homoscedasticity, and the dependent variable is normally distributed. Diagnostic tests check for outliers, normality, linear relationships between variables, multicollinearity, autocorrelation, and homoscedasticity. The sample size should be at least 20 cases per independent variable.

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    Multiple regression analysis is used to predict the value of a dependent variable based on the values of two or more independent variables. It assumes variables have a linear relationship, no multicollinearity or autocorrelation, homoscedasticity, and the dependent variable is normally distributed. Diagnostic tests check for outliers, normality, linear relationships between variables, multicollinearity, autocorrelation, and homoscedasticity. The sample size should be at least 20 cases per independent variable.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    26 views12 pages

    Linear Regression

    Uploaded by

    rupal patidar
    Multiple regression analysis is used to predict the value of a dependent variable based on the values of two or more independent variables. It assumes variables have a linear relationship, no multicollinearity or autocorrelation, homoscedasticity, and the dependent variable is normally distributed. Diagnostic tests check for outliers, normality, linear relationships between variables, multicollinearity, autocorrelation, and homoscedasticity. The sample size should be at least 20 cases per independent variable.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 12

    Secondary Data Analysis

    • Linear Regression
    • Multiple Regression
    • Logistic Regression
    Multiple Linear Regression

    • Multiple regression is an extension of simple linear regression. It is


    used when we want to predict the value of a variable based on the
    value of two or more other variables. The variable we want to predict
    is called the dependent variable (or sometimes, the outcome, target
    or criterion variable).
    Assumptions of Linear Multiple Regression
    • No outliers
    • Dependent variable is normally distributed
    • Linear relationship between dependent and independent variables
    • No or little multicollinearity
    • No auto-correlation
    • Homoscedasticity
    • In Linear regression the sample size rule of thumb is that the
    regression analysis requires at least 20 cases per independent variable
    in the analysis.
    No Outliers

    • Check Cook’s distance in Save option while conducting Linear


    Regression.

    • Cook’s distance should be less than 1.

    • A new variable will be added in the data showing Cook’s distance for
    each respondent.
    Dependent variable is normally distributed
    • Analyze > Descriptive Statistics >
    Explore
    • In plots
    • Check histogram
    • Check normality plots with tests
    • Shapiro Wilk test should have p value
    greater than 0.05
    Linear relationship
    • Visually inspect scatter plot
    • Graphs > Chart Builder >
    Scatter/Dot
    • Select the dependent variable in
    y axis
    • Select independent variable
    individually in x axis
    Multicollinearity
    • Multicollinearity refers to a situation in which more than two
    explanatory variables in a multiple regression model are highly
    linearly related.
    • Check Collinearity diagnostics in Statistics option while
    conducting Linear Regression.
    • VIF value should be less than 10.
    No autocorrelation
    • Data that is correlated with itself, as opposed to being correlated with
    some other data
    • May happen in time series data.
    • Stock prices, where the price is not independent from the previous
    price.
    • Check Durbin Watson in Statistics option while conducting Linear
    Regression.
    • Durbin Watson should be between 1.5 and 2.5.
    Homoskedasticity

    • Homoscedasticity describes a situation in which the error term


    (that is, the “noise” or random disturbance in the relationship
    between the independent variables and the dependent variable)
    is the same across all values of the independent variables.

    • ZRESID in Y axis

    • ZPRED in X axis
    Regression Interpretation
    • In Model summary table, check the value of Adjusted R square
    • It should be greater than 0.3
    • In ANOVA table, check the value of Significance level
    • It should be less than 0.05. It means that the model is significant.
    • In coefficients table, first check the value of significance level
    • If the value of significance of a variable is greater than 0.05, that variable is
    insignificant. Remove the variable and run the regression again. Repeat till
    there are no insignificant variables.
    • Finally, note down the B (Beta) value of all the variables.
    • Develop the regression equation.

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