SCHOOL OF BUSINESS Department of Economics Your text here 1 Correlation and Linear Regression (𝒀 = 𝒂 + 𝒃𝑿) How to use the CASIO fx-95 & fx-991 calculators to compute the slope of the regression line “b”, y-intercept “a”, the correlation coefficient(r) and (𝒙 − 𝒙)𝟐 CASIO Fx-95 Calculator Given the following Data for the variables (X& Y): X Y 7 11 9 14 11 22 12 27 Ø To Start Linear Regression: Press MODE Lin 1 Reg 3 Ø Data entry: Press 7 , 11 M+ Press 9 , 14 M+ Press 11 , 22 M+ Press 12 , 27 M+ Press AC Ø First: To Calculate y-intercept “a” . Press SHIFT S-VAR 2 ▲ ◄ REPLAY► ▼ ▲ ◄ REPLAY► ▼ Then a=-12.898 Press AC Page 1 of 4 A 1 SCHOOL OF BUSINESS Department of Economics Your text here 2 Ø Second: To Calculate slope “b” Press SHIFT S-VAR 2 ▲ ◄ REPLAY► ▼ ▲ ◄ REPLAY► ▼ B 2 Then b=3.22 Press AC Ø Third: To Calculate the correlation coefficient “r” Press SHIFT S-VAR 2 ▲ ◄ REPLAY► ▼ ▲ ◄ REPLAY► ▼ r 3 Then r=0.9747 Press AC Ø Fourth: To Calculate (𝒙 − 𝒙)𝟐 for Prediction or Confidence Interval Press SHIFT S-VAR 2 Xσn-1 3 Then Sx=2.217 Then Press (𝒙 − 𝒙)𝟐 =(Sx) 2 *(n-1)=4.917*(3)=14.75 AC Ø To Finish Statistics Calculations: Press MODE 1 Page 2 of 4 SCHOOL OF BUSINESS Department of Economics Your text here 3 CASIO Fx-991 Calculator Given the following Data for the variables (X& Y): X Y 7 11 9 14 11 22 Ø To Start Linear Regression: Press MODE STAT 3 A+BX 2 Ø Data entry: Press the number then equal X 7 9 11 12 Press Y 11 14 22 27 AC Ø First: To Calculate y-intercept “a” . Press SHIFT 1 Reg 5 A 1 Then a=-12.898 Press AC Ø Second: To Calculate slope “b” Press SHIFT 1 Reg 5 B 2 Then b=3.22 Press AC Page 3 of 4 12 27 SCHOOL OF BUSINESS Department of Economics Your text here 4 Ø Third: To Calculate the correlation coefficient “r” Press SHIFT 1 Reg 5 r 3 Then r=0.9747 Press AC Ø Fourth: To Calculate (𝒙 − 𝒙)𝟐 for Prediction or Confidence Interval Press SHIFT 1 VAR 4 Xσn-1 4 Then Sx=2.217 Then Press (𝒙 − 𝒙)𝟐 =(Sx) 2 *(n-1)=4.917*(3)=14.75 AC Ø To Finish Statistics Calculations: Press MODE 1 Page 4 of 4