Stat 401 B – Lecture 7 Simple Linear Regression Question Is annual carbon dioxide concentration related to annual global temperature? 1 Bivariate Fit of Temp By CO2 15.0 Temp 14.5 14.0 13.5 300 350 400 CO2 2 Linear Fit Linear Fit yˆ = βˆ0 + βˆ1 x Predicted Temp = 9.8815 + 0.012584*CO2 3 1 Stat 401 B – Lecture 7 R2 (RSquare) 80.6% of the variation in the global temperature can be explained by the linear relationship with carbon dioxide concentration. 19.4% is unexplained. 4 Interpretation There is a fairly strong positive linear relationship between annual carbon dioxide concentration and annual global temperature. 5 Testing Hypotheses Question Is the linear relationship between annual carbon dioxide concentration and annual global temperature statistically significant? 6 2 Stat 401 B – Lecture 7 Step 1 - Hypotheses H 0 : β1 = 0 H A : β1 ≠ 0 7 Step 2 – Test Statistic t= (βˆ − 0) 1 se( βˆ1 ) se( βˆ1 ) = MS Error 2 ∑ (x − x ) df = n − 2 8 Step 2 – Test Statistic βˆ1 = 0.012584 se( βˆ1 ) = 0.001456 βˆ − 0 0.012584 = = 8.64 t= 1 se( βˆ ) 0.001456 ( ) 1 P - value < 0.0001 9 3 Stat 401 B – Lecture 7 Step 3 - Decision Reject the null hypothesis because the P-value is so small (smaller than 0.05). 10 Step 4 – Conclusion Based on our sample data, there is a statistically significant linear relationship between annual carbon dioxide concentration and annual global temperature. 11 Confidence Interval ( ) βˆ1 ± t * se βˆ1 t * from t - table with df = n − 2 95% confidence, df = 18, t * = 2.101 12 4 Stat 401 B – Lecture 7 Confidence Interval ( ) βˆ1 ± t * se βˆ1 0.012584 ± 2.101(0.001456 ) 0.012584 ± 0.003059 0.0095 to 0.0156 13 Interpretation – Part 1 The population slope parameter relating CO2 to temperature could be any value between 0.0095 and 0.0156. Units are o C/ppmv. 14 Interpretation – Part 2 We are 95% confident that intervals based on random samples from the population with capture the actual population slope parameter. This is confidence in the process. 15 5 Stat 401 B – Lecture 7 Y-Intercept When the Y-intercept is interpretable within the context of the problem, it may be of interest to do inference based on the estimated yintercept, β̂ 0 . 16 Test of Hypotheses H 0 : β0 = 0 : β0 ≠ 0 βˆ 0 − 0 t = se ( βˆ ) H A ( ) 0 df = n − 2 17 Confidence Interval βˆ0 ± t * se( βˆ0 ) t * from t - table with df = n − 2 18 6