Power Point Slides Prepared by Robert F Brooker

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 1 1

Multiple Regression Analysis Model: Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 2

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 3

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 4

Multiple Regression Analysis Adjusted Coefficient of Determination Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 5

Multiple Regression Analysis of Variance and F Statistic Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 6

Problems in Regression Analysis • Multicollinearity: Two or more explanatory variables are highly correlated. • Heteroskedasticity: Variance of error term is not independent of the Y variable. • Autocorrelation: Consecutive error terms are correlated. Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 7

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 8

Durbin-Watson Statistic Test for Autocorrelation If d = 2, autocorrelation is absent. Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 9

Steps in Demand Estimation • • • Model Specification: Identify Variables Collect Data Specify Functional Form Estimate Function Test the Results Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 10

Functional Form Specifications Linear Function: Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Estimation Format: Copyright 2007 by Oxford University Press, Inc. Slide 11

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 12

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 13

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 14

Chapter 4 Appendix Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 15

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 16

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 17

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 18

Getting Started • Install the Analysis Tool. Pak add-in from the Excel installation media if it has not already been installed • Attach the Analysis Tool. Pak add-in – From the menu, select Tools and then Add. Ins. . . – When the Add-Ins dialog appears, select Analysis Tool. Pak and then click OK. Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 19

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 20

Entering Data • Data on each variable must be entered in a separate column • Label the top of each column with a symbol or brief description to identify the variable • Multiple regression analysis requires that all data on independent variables be in adjacent columns Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 21

Example Data Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 22

Running the Regression • Select the Regression tool from the Analysis Tool. Pak dialog – From the menu, select Tools and then Data Analysis. . . – On the Data Analysis dialog, scroll down the list of Analysis Tools, select Regression, and then click OK – The Regression tool dialog will then be displayed Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 23

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 24

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 25

Select the Data Ranges • Type in the data range for the Y variable or select the range on the worksheet • Type in the data range for the X variable(s) or select the range on the worksheet • If your ranges include the data labels (recommended) then check the labels option Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 26

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 27

Select an Output Option • Output to a selected range – Selection is the upper left corner of the output range • Output to a new worksheet – Optionally enter a name for the worksheet • Output to a new workbook • And then click OK Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 28

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 29

Regression Output Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 30

Multiple Regression Data Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 31

Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 32

Regression Output Power. Point Slides Prepared by Robert F. Brooker, Ph. D. Copyright 2007 by Oxford University Press, Inc. Slide 33