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
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