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Copyright © 2012 Pearson Education, Inc. All rights reserved

Chapter 12

Multiple Regression and Model Building

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Figure SIA12.1 Layout of condominium complex

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Table SIA12.1

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12.1

Multiple-Regression Models

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Procedure

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Procedure

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Procedure

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Part l

First-Order Models with Quantitative Independent Variables

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12.2

Estimating and Making Inferences about the Parameters

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Procedure

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Table 12.1

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Figure 12.1 MINITAB side-by-side scatterplots for the data of Table 12.1

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Figure 12.2 MINITAB analysis of the auction price model

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Procedure

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Figure 12.3 MINITAB graph of for1 2( ) 1 2E y x x 2 0,1,2,x

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Figure 12.4 MINITAB 3-dimensional graph of 1 2( ) 1 2E y x x

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Procedure

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Procedure

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Procedure

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Figure 12.5 Rejection Region for

0 2 2: 0 . : 0H vs H

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12.3

Evaluating Overall Model Utility

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Procedure

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Procedure

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Figure 12.6 SAS analysis of the auction price model

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Procedure

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Procedure

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Procedure

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Procedure

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12.4

Using the Model for Estimation and Prediction

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Figure 12.7 MINITAB printout with 95% confidence intervals for grandfather clock model

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Figure SIA12.2 MINITAB scatterplots for CONDO data

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Figure SIA12.3 MINITAB regression output for first-order model of condominium unit sale price

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Figure SIA12.4 MINITAB printout with 95% confidence and prediction intervals

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Part ll

Model Building in Multiple Regression

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12.5

Interaction Models

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Figure 12.8 MINITAB graphs of for1 2 1 21 2 3x x x x 2 0,1, 2x

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Procedure

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Figure 12.9 MINITAB 3-dimensional graphs of 1 2 1 21 2 3x x x x

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Figure 12.10 Examples of no-interaction and interaction models

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Figure 12.11 MINITAB printout of interaction model of auction price

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Quadratic and Other Higher Order Models

12.6

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Figure 12.12 Graphs of two quadratic models

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Procedure

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Table 12.2

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Figure 12.13 MINITAB scatterplot for electrical usage data

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Figure 12.14 SAS regression output for electrical usage model

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Figure 12.15 MINITAB plot of least squares model for electrical usage

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Figure 12.16 Potential misuse of quadratic model

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Procedure

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Figure 12.17 Graphs for three second-order surfaces

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Qualitative (Dummy) Variable Models

12.7

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Figure 12.18 Bar chart comparing E(y) for males and females

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Procedure

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Procedure

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Table 12.3

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Figure 12.19 MINITAB output for model with dummy variables

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Models with Both Quantitative and Qualitative Variables (Optional)

12.8

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Figure 12.20 Graphs of the relationship between mean sales E(y) and advertising expenditure x

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Figure 12.21 The relationship between E(y) and x1 is the same for all media

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Figure 12.22 Parallel response lines for the three media

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Figure 12.23 Different response lines for the three media

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Table 12.4

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Figure 12.24 MINITAB printout of the complete model for the casting media

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Figure 12.25 MINITAB plot of prediction equations for two plants

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Figure 12.26 The relationship between E(y) and x1 is the same for all media

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Figure 12.27 The response curves have the same shapes, but different y-intercepts

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Figure 12.28 The response curves for the three media differ

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Comparing Nested Models (Optional)

12.9

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Definition

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Procedure

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Table 12.5

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Figure 12.29 SAS printout of complete second-order model for height

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Figure 12.30 Plot of second-order least squares model for Example 12.12

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Figure 12.31 SAS printout of first-order model for height

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Definition

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Procedure

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Figure SIA12.5 SAS printout of second-order model for condo sale price-quantitative variables only

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Figure SIA12.6 SAS regression printout for the complete second-order model of condo sale price-qualitative variables added

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Stepwise Regression (Optional)

12.10

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Table 12.6

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Figure 12.32 MINITAB stepwise regression printout for executive salary data

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Multiple Regression Diagnostics

Part lll

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Residual Analysis: Checking the Regression Assumptions

12.11

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Figure 12.33 Actual random error and regression residual ̂

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Definition

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Procedure

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Table 12.7

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Figure 12.34a MINTAB printout for straight-line model of electrical usage

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Figure 12.34b MINITAB printout for quadratic model of electrical usage

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Figure 12.35a MINITAB residual plot for straight-line model of electrical usage

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Figure 12.35b MINITAB residual plot for quadratic model of electrical usage

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Figure 12.36 Residual plots showing changes in the variance of

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Table 12.8

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Table 12.8 (cont’d)

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Figure 12.37 SPSS regression printout for first-order model of salary

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Figure 12.38 SPSS residual plots for first-order model of salary

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Figure 12.39 SPSS regression printout for model of log salary

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Figure 12.40 SPSS residual plots for model of ln(salary)

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Definition

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Table 12.9

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Figure 12.41 MINITAB regression printout for altered grandfather clock data

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Figure 12.41 MINITAB regression printout for altered grandfather clock data (cont’d)

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Figure 12.42 MINITAB residual plot of altered grandfather clock data

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Figure 12.43 MINITAB regression printout when outlier is deleted

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Figure 12.44 MINITAB residual plot when outlier is deleted

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Figure 12.45a MINITAB graphs of regression residuals for grandfather clock model (outlier included)

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Figure 12.45b MINITAB graphs of regression residuals for grandfather clock model (outlier included) (cont’d)

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Figure 12.46a MINITAB graphs of regression residuals for grandfather clock model (outlier deleted)

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Figure 12.46b MINITAB graphs of regression residuals for grandfather clock model (outlier deleted) (cont’d)

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Figure 12.47 Hypothetical residual plot for time-series data

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Procedure

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Figure SIA12.7 MINITAB histogram of residuals from second-order model of condo sale price

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Figure SIA12.8 MINITAB plot of residuals versus predicted values from second-order model of condo sale price

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Figure SIA12.9 MINITAB list of outliers for the second-order model of condo sale price

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Figure SIA12.10 MINITAB printout of second-order model of condo sale price with outliers deleted

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Some Pitfalls: Estimability, Multicollinearity, and Extrapolation

12.12

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Figure 12.48 Yield and fertilizer expenditure data three years

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Figure 12.49 Only two x values observed: quadratic model is not estimable

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Definition

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Procedure

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Procedure

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Table 12.10

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Figure 12.50 SAS printout for model of CO content, Example 12.18

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Procedure

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Figure 12.51 Using a regression model outside the experimental region

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