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![Page 1: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/1.jpg)
Guide to Using Minitab 14 For Basic Statistical Applications
Guide to Using Minitab 14 For Basic Statistical Applications
To Accompany
Business Statistics: A Decision Making Approach, 8th Ed.
Chapter 15:
Multiple Regression and Model Building
By
Groebner, Shannon, Fry, & SmithPrentice-Hall Publishing Company
Copyright, 2011
![Page 2: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/2.jpg)
Chapter 15 Minitab Examples
Multiple Regression First City Real Estate
Multiple Regression – Variance Inflation Factor
First City Real Estate Multiple Regression – Dummy Variable
First City Real Estate Curvilinear Regression Prediction
Ashley Investment Services
More Examples
![Page 3: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/3.jpg)
Chapter 15 Minitab Examples (cont’d)
Second Order Model Ashley Investment Services
Standard Stepwise Regression Lomgmont Corporation
Residual Analysis First City Real Estate
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Multiple RegressionFirst City Real Estate
Issue: First City management wishes to build a model that can be used to predict sales prices for residential property.
Objective: Use Minitab to build a multiple regression model relating sales price to a set of measurable variables.
Data file is First City.MTW
![Page 5: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/5.jpg)
Open File First City.MTW
Multiple Regression – First City Real Estate
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First click on Stat, then Basic Statistics and finally on Correlation.
Multiple Regression – First City Real Estate
![Page 7: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/7.jpg)
Identify columns for Variables. Click on OK
Multiple Regression – First City Real Estate
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The Minitab output shows the correlation (r = -0.073) between Age and Square Feet.
Multiple Regression – First City Real Estate
![Page 9: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/9.jpg)
The correlation between each predictor and Price is highly significant. Thus, each predictor will be inserted into the regression model.
Multiple Regression – First City Real Estate
![Page 10: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/10.jpg)
Click on Stat, then Regression and then Regression again.
Multiple Regression – First City Real Estate
![Page 11: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/11.jpg)
Define the columns containing the Response (Price) and Predictor Variables
Multiple Regression – First City Real Estate
![Page 12: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/12.jpg)
The regression coefficients, R2, S, and sum of squares are all generated by the regression command.
Multiple Regression – First City Real Estate
![Page 13: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/13.jpg)
Issue: First City managers wish to improve the model by adding a location variable.
Objective: Use Minitab to improve a regression model by adding a dummy variable.
Data file is First City.MTW
Multiple Regression – Dummy Variable
First City Real Estate
Multiple Regression – Dummy Variable
First City Real Estate
![Page 14: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/14.jpg)
Open file First City.MTW.
Multiple Regression – Dummy Variable - First City
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Click on Stat then Regression and then Regression again.
Multiple Regression – Dummy Variable - First City
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Select the columns containing the Response and Predictor Variables.
Multiple Regression – Dummy Variable - First City
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The output shows an improved regression model with the variable, Area, included.
Multiple Regression – Dummy Variable - First City
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Curvilinear Relationships - Ashley Investment ServicesCurvilinear Relationships - Ashley Investment Services
Issue: The director of personnel is trying to determine whether there is a relationship between employee burnout and time spent socializing with co-workers.
Objective: Use Minitab to determine whether the relationship between the two measures is statistically significant.
Data file is Ashley.MTW
![Page 19: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/19.jpg)
Open File Ashley.MTW
File contains values for 20 Investment Advisors.
Curvilinear Relationships – Ashley Investment Services
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To develop the scatter plot first click on Graph button then select Scatterplot
Curvilinear Relationships – Ashley Investment Services
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Select Simple
Curvilinear Relationships – Ashley Investment Services
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Identify the columns containing the variables to be graphed.
Curvilinear Relationships – Ashley Investment Services
![Page 23: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/23.jpg)
Relationship may be curvilinear – next, fit linear to see model results
Curvilinear Relationships – Ashley Investment Services
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Click on Stat then Regression and then Regression.
Curvilinear Relationships – Ashley Investment Services
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Identify the columns containing the X and Y variables. Then click OK.
Curvilinear Relationships – Ashley Investment Services
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To find a nonlinear model, click on Stat then Regression and select Fitted Line Plot.
Curvilinear Relationships – Ashley Investment Services
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Minitab gives the choice of three models, select Quadratic.
Curvilinear Relationships – Ashley Investment Services
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This gives the Quadratic Regression Line. The Regression Equation and R-Square value are given.
Curvilinear Relationships – Ashley Investment Services
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This gives Regression Equation and R-square value. The R-Square value is larger than that for the linear model.
Curvilinear Relationships – Ashley Investment Services
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Interactive Effects - Ashley Investment ServicesInteractive Effects - Ashley Investment Services
Issue: The director of personnel is trying to determine whether there are interactive effects in the relationship between employee burnout and time spent socializing with co-workers.
Objective: Use Minitab to determine whether interactive effects between the two measures are statistically significant.
Data file is Ashley-2.MTW
![Page 31: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/31.jpg)
Interactive Effects – Ashley Investment Services
Open File Ashley-2.MTW
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Interactive Effects – Ashley Investment Services
To simplify the next few steps, modify the names of Columns C2 and C3, adding X1 and X2
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Interactive Effects – Ashley Investment Services
Using the Calculator tab, set up columns C4, C5 and C6 as:
Column C4 – Expression C2 * C2
Column C5 – Expression C2 * C1
Column C6 – Expression C4 * C3
Identify the column headings
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Interactive Effects – Ashley Investment Services
Click on Stat then Regression and then Regression.
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Identify the columns containing the X and Y variables. Then click OK.
Interactive Effects – Ashley Investment Services
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Interactive Effects – Ashley Investment Services
Regression Coefficients
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Issue: The company is interested in analyzing the residuals of the regression model to determine whether the assumptions are satisfied.
Objective: Use Minitab to analyze residuals from a regression model.
Data file is First City-3.MTW
Residual Analysis - First City Real Estate
Residual Analysis - First City Real Estate
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Open file First City-3.MTW
Residual Analysis – First City Real Estate
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Click on Stat, then Regression and then Regression again.
Residual Analysis – First City Real Estate
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Identify the x and y variables.
Residual Analysis – First City Real Estate
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R-square = 96.9%
Residual Analysis – First City Real Estate
![Page 42: Guide to Using Minitab 14 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 8th Ed. Chapter 15: Multiple.](https://reader034.fdocuments.in/reader034/viewer/2022052701/56649c775503460f9492c785/html5/thumbnails/42.jpg)
These are the options using the Graphs button – Select Residuals versus fits.
Residual Analysis – First City Real Estate
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Residual Plot versus fitted y values.
Residual Analysis – First City Real Estate
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Select Histogram of residuals
Residual Analysis – First City Real Estate
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Residual Analysis – First City Real Estate