Main Module 2
Simple Linear Regression and Correlation

Learning Objectives

At the end of the module, the student will:

 Know that regression analysis concerns the form and direction of the relationship between variables; and is used for prediction. 

Know that correlation analysis concerns the strength of the relationship between variables

Enter data for an independent and a dependent variable using Microsoft Excel and generate a scatter diagram plot. Insert a trend line, regression equation and coefficient of determination on the plot.

  Generate a regression analysis, line fit plot, residual plot with prediction intervals, normal probability plot, and correlation coefficient in Microsoft Excel.

Interpret regression coefficients, practical utility, statistical utility of the regression model; and interpret the correlation.

  Evaluate the assumptions of a regression.

  Use regression model for prediction.

Module Notes

The following sub modules contain summary notes for the two content topic areas of Module 2.

Module 2.1: Simple Linear Regression: Present and Describe Linear Relationships

Module 2.2: Test Linear Relationships and Make Predictions

Optional Text Reading

Anderson, D., Sweeney, D., & Williams, T. (2006). Essentials of Modern Business Statistics with Microsoft Excel. Cincinnati, OH: South-Western. Chapter 12.

Ken Black. Business Statistics for Contemporary Decision Making. Fourth Edition, Wiley. Chapter13

D. Groebner, P. Shannon, P. Fry & K. Smith. Business Statistics: A Decision Making Approach, Seventh Edition, Prentice Hall, Chapter 1