How are Regression Equations derived? Explain.

Computation of Regression Equations : Algebraic expression of regression lines is called regression equations. Like lines equations are also two :

Regression Equation X on Y

Regression Equation Y on X

Original Form :

X = a + by

Formula :

                                                                             

X - X = bxy (Y - Y)

Here -

X à Mean of x series. Y à Mean of y series.

bxy àRegression coefficient X on Y

Original Form :

Y = a + bx

Formula :

                                                                             

Y - Y = byx (X - X)

Here -

X à Mean of x series. Y à Mean of y series.

byx àRegression coefficient Y on X

Computation of Regression Coefficients :

1. Direct Method :

1. Direct Method :

bxy = Σxy

Σy2

or bxy = r σx  

σy

byx = Σxy

Σx2

or byx = r σy  

σx

2. Short Cut Method :

2. Short Cut Method :

bxy = N. Σdxdy – (Σdx . Σdy)

N.Σd2y – (Σdy)2 Here - dx = X - A

dy =Y - A

bxy = N. Σdxdy – (Σdx . Σdy) N.Σd2x – (Σdx)2

Here - dx = X - A

dy =Y - A

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