Honors Stats2 Day 5 Do Now • • • There is a moderately strong positive correlation (0.62) between male’s height and salary. 1) What does that mean? 2) If Alfonso (75in) wants to predict his salary knowing that the average male height is 69in with an SD of 2.9in and the average male(age 25-35) salary is $40,650 with a SD of $10,520, what would his salary be? Interpretation • • Correlation(r): as one variable goes up, what happens to the other Slope: for every change of 1 x, there is m amount of change in y Y-Intercept: the starting point (x=0) R squared • Literally squaring the “r” term • Interpreting R Squared • Change R2 into a percent • R2% of variation in y is explained by variation in x. • Practice: There is a strong negative correlation (0.76) between age and electronics purchases. Interpret R2 • Interpret the correlation and the following line of best fit that describes the correlation that predicts the age of a person. • ^ y = -13x + 83 • Practice Interpreting • Worksheet What was residual again? • Observed value - Predicted value Example 1: According to the correlation between absences and quiz grades, Rico was predicted to score an 80 on his quiz. He scored an 82. What was the residual? Example 2: According to the correlation between age and spending, I was predicted to spend $737/mo at my age. I actually spent $722. What was the residual? More Examples Given the graph, approximate the residual for… 1) 4 hours worked? • 2) 1 hour worked? • More Examples Given that the line of best fit is • 32.4x+5 and the actual value for 4 was 123, what is the residual value? • Residuals Tell us how well the model/line fits! • (is the line “appropriate”) • • If a model makes sense, it should show us the underlying relationship– the leftovers should show nothing (no association) Plotting Residual Testing for Fitness • After making a regression line, plot the residuals and hope for NOTHING If this is your residual plot… Residual Exit Ticket • You have just completed Unit 2 on Correlation and Linear Regression Homework • Chapter 8 #3, 4, 9, 10, 13, 14, 27