Ch 12.1 and 12.2 Inference for Linear Regression and Transforming to Achieve Linearity We remember best fit lines: y =ax + b or y = a + bx Now we are going to construct a confidence interval for the slope of the regression line. EQUATION (from ch 8.1): Stat ± critical value(standard deviation of stat) Margin of error Since we don’t have the standard deviation of the slope, we use the standard error or SE instead b ± t*SEb with df = n - 2 Remember to find t* on a graphing calc (TI-84 or above): invT(% above, df) …so for a 95% CI, the % above = 2.5% or .025 -----------------------------------------------------------------------------------------------------Now we are going to determine if Ho: There is no evidence of a linear relationship or Ha: There is evidence of a linear relationship HOW? We focus on the slope of the line (β), with Ho: β = 0 and Ha: β ≠ 0 (there is a relationship) β > 0 (positive relationship) β < 0 (negative relationship) We use a modified t-test for this…either with the equation with df = n – 2 On a graphing calc: STAT TEST, E: LinRegTTest. The x-values must be in L1 and the y-values must be in L2. This will give you the p-value, as well as the equation, correlation coefficient, and r2 values for the line. Don’t forget… In addition, all conditions must be met… linear: the relationship should be linear (check residual) independent: individual observations are independent normal: the y-values have a normal distribution (the graph is not skewed) equal variance: σ of y is roughly the same for all x (look at the residual and make sure the distance of the points from the x-axis doesn’t change as x gets bigger or smaller random: the data points come from a randomized survey or experiment To help remember them, think LINER L I N E R If you need it… SEb = where s is the standard deviation of the residual