(BQ) Part 2 book "Business statistics" has contents: Simple linear regression and correlation, multiple regression, time series, forecasting, and index numbers, quality control and improvement, bayesian statistics and decision analysis, sampling methods, multivariate analysis,.and other contents. | 410 1 1 1 1 1 Aczel−Sounderpandian: Complete Business Statistics, Seventh Edition 10. Simple Linear Regression and Correlation 10 1 Text © The McGraw−Hill Companies, 2009 SIMPLE LINEAR REGRESSION AND CORRELATION 10–1 10–2 10–3 10–4 1 1 1 1 1 Using Statistics 409 The Simple Linear Regression Model 411 Estimation: The Method of Least Squares 414 Error Variance and the Standard Errors of Regression Estimators 424 10–5 Correlation 429 10–6 Hypothesis Tests about the Regression Relationship 434 10–7 How Good Is the Regression? 438 10–8 Analysis-of-Variance Table and an F Test of the Regression Model 443 10–9 Residual Analysis and Checking for Model Inadequacies 445 10–10 Use of the Regression Model for Prediction 454 10–11 Using the Computer 458 10–12 Summary and Review of Terms 464 Case 13 Firm Leverage and Shareholder Rights 466 Case 14 Risk and Return 467 LEARNING OBJECTIVES 408 After studying this chapter, you should be able to: • Determine whether a regression experiment would be useful in a given instance. • Formulate a regression model. • Compute a regression equation. • Compute the covariance and the correlation coefficient of two random variables. • Compute confidence intervals for regression coefficients. • Compute a prediction interval for a dependent variable. • Test hypotheses about regression coefficients. • Conduct an ANOVA experiment using regression results. • Analyze residuals to check the validity of assumptions about the regression model. • Solve regression problems using spreadsheet templates. • Use the LINEST function to carry out a regression. 1 1 1 1 1 Aczel−Sounderpandian: Complete Business Statistics, Seventh Edition 10. Simple Linear Regression and Correlation Text 10–1 Using Statistics In 1855, a 33-year-old Englishman settled down to a life of leisure in London after several years of travel throughout Europe and Africa. The boredom brought about by a comfortable life induced him
