![Page 1: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/1.jpg)
Guide to Using Minitab 14 For Basic
Statistical Applications
To Accompany
Business Statistics: A Decision Making
Approach, 8th Ed.
Chapter 15:
Multiple Regression and Model Building
By
Groebner, Shannon, Fry, & SmithPrentice-Hall Publishing Company
Copyright, 2011
![Page 2: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/2.jpg)
Chapter 15 Minitab Examples
Multiple Regression
First City Real Estate
Multiple Regression – Variance Inflation Factor
First City Real Estate
Multiple Regression – Dummy Variable
First City Real Estate
Curvilinear Regression Prediction
Ashley Investment Services
More Examples
![Page 3: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/3.jpg)
Chapter 15 Minitab Examples (cont’d)
Second Order Model
Ashley Investment Services
Standard Stepwise Regression
Lomgmont Corporation
Residual Analysis
First City Real Estate
![Page 4: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/4.jpg)
Multiple RegressionFirst City Real Estate
Issue: First City management wishes to build a
model that can be used to predict sales prices
for residential property.
Objective: Use Minitab to build a multiple
regression model relating sales price to a set of
measurable variables.
Data file is First City.MTW
![Page 5: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/5.jpg)
Open File First City.MTW
Multiple Regression – First City Real Estate
![Page 6: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/6.jpg)
First click on Stat,then Basic Statisticsand finally on Correlation.
Multiple Regression – First City Real Estate
![Page 7: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/7.jpg)
Identify columns for Variables. Click on OK
Multiple Regression – First City Real Estate
![Page 8: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/8.jpg)
The Minitab output shows the correlation (r = -0.073)between Age and Square Feet.
Multiple Regression – First City Real Estate
![Page 9: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/9.jpg)
The correlation between eachpredictor and Price is highly significant. Thus, each predictor will be inserted into the regression model.
Multiple Regression – First City Real Estate
![Page 10: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/10.jpg)
Click on Stat, then Regression and then Regression again.
Multiple Regression – First City Real Estate
![Page 11: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/11.jpg)
Define the columns containing the Response (Price)and Predictor Variables
Multiple Regression – First City Real Estate
![Page 12: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/12.jpg)
The regression coefficients, R2, S, and sum of squares are all generated by the regression command.
Multiple Regression – First City Real Estate
![Page 13: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/13.jpg)
Issue: First City managers wish to improve the
model by adding a location variable.
Objective: Use Minitab to improve a regression
model by adding a dummy variable.
Data file is First City.MTW
Multiple Regression –
Dummy Variable
First City Real Estate
![Page 14: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/14.jpg)
Open file First City.MTW.
Multiple Regression – Dummy Variable - First City
![Page 15: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/15.jpg)
Click on Stat then
Regression and then
Regression again.
Multiple Regression – Dummy Variable - First City
![Page 16: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/16.jpg)
Select the columns containing the Response and Predictor Variables.
Multiple Regression – Dummy Variable - First City
![Page 17: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/17.jpg)
The output shows an improved regression model with the variable, Area, included.
Multiple Regression – Dummy Variable - First City
![Page 18: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/18.jpg)
Curvilinear Relationships -
Ashley Investment Services
Issue: The director of personnel is trying to determine
whether there is a relationship between employee
burnout and time spent socializing with co-workers.
Objective: Use Minitab to determine whether the
relationship between the two measures is statistically
significant.
Data file is Ashley.MTW
![Page 19: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/19.jpg)
Open File Ashley.MTW
File contains values for 20 Investment Advisors.
Curvilinear Relationships – Ashley Investment Services
![Page 20: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/20.jpg)
To develop the scatter plot first click on Graphbutton then select Scatterplot
Curvilinear Relationships – Ashley Investment Services
![Page 21: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/21.jpg)
Select Simple
Curvilinear Relationships – Ashley Investment Services
![Page 22: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/22.jpg)
Identify the columns containing the variables to be graphed.
Curvilinear Relationships – Ashley Investment Services
![Page 23: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/23.jpg)
Relationship may be curvilinear – next, fit linear to see model results
Curvilinear Relationships – Ashley Investment Services
![Page 24: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/24.jpg)
Click on Stat then Regressionand then Regression.
Curvilinear Relationships – Ashley Investment Services
![Page 25: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/25.jpg)
Identify the columns containing the X and Y variables. Then click OK.
Curvilinear Relationships – Ashley Investment Services
![Page 26: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/26.jpg)
To find a nonlinear model, click on Stat then Regression and select Fitted Line Plot.
Curvilinear Relationships – Ashley Investment Services
![Page 27: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/27.jpg)
Minitab gives the choice of three models, select Quadratic.
Curvilinear Relationships – Ashley Investment Services
![Page 28: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/28.jpg)
This gives the Quadratic Regression Line. The Regression Equation and R-Squarevalue are given.
Curvilinear Relationships – Ashley Investment Services
![Page 29: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/29.jpg)
This gives Regression Equationand R-squarevalue. The R-Square value is larger than that for the linear model.
Curvilinear Relationships – Ashley Investment Services
![Page 30: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/30.jpg)
Interactive Effects - Ashley
Investment Services
Issue: The director of personnel is trying to determine
whether there are interactive effects in the relationship
between employee burnout and time spent socializing
with co-workers.
Objective: Use Minitab to determine whether interactive
effects between the two measures are statistically
significant.
Data file is Ashley-2.MTW
![Page 31: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/31.jpg)
Interactive Effects – Ashley Investment Services
Open File Ashley-2.MTW
![Page 32: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/32.jpg)
Interactive Effects – Ashley Investment Services
To simplify the next few steps, modify the names of Columns C2 and C3, adding X1 and X2
![Page 33: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/33.jpg)
Interactive Effects – Ashley Investment Services
Using the Calculator tab, set up columns C4, C5 and C6 as:
Column C4 – Expression C2 * C2
Column C5 – Expression C2 * C1
Column C6 – Expression C4 * C3
Identify the column headings
![Page 34: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/34.jpg)
Interactive Effects – Ashley Investment Services
Click on Stat then Regression and then Regression.
![Page 35: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/35.jpg)
Identify the columns containing the X and Y variables. Then click OK.
Interactive Effects – Ashley Investment Services
![Page 36: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/36.jpg)
Interactive Effects – Ashley Investment Services
Regression Coefficients
![Page 37: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/37.jpg)
Issue: The company is interested in analyzing the
residuals of the regression model to determine whether
the assumptions are satisfied.
Objective: Use Minitab to analyze residuals from a
regression model.
Data file is First City-3.MTW
Residual Analysis -
First City Real Estate
![Page 38: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/38.jpg)
Open file First City-3.MTW
Residual Analysis – First City Real Estate
![Page 39: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/39.jpg)
Click on Stat, then Regressionand then Regression again.
Residual Analysis – First City Real Estate
![Page 40: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/40.jpg)
Identify the x and y variables.
Residual Analysis – First City Real Estate
![Page 41: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/41.jpg)
R-square = 96.9%
Residual Analysis – First City Real Estate
![Page 42: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/42.jpg)
These are the options using the Graphsbutton – Select Residuals versus fits.
Residual Analysis – First City Real Estate
![Page 43: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/43.jpg)
Residual Plot versus fitted y values.
Residual Analysis – First City Real Estate
![Page 44: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/44.jpg)
Select Histogram of residuals
Residual Analysis – First City Real Estate
![Page 45: Groebner Business Statistic 8ed Ch15 Minitab Tutorial](https://reader030.vdocument.in/reader030/viewer/2022012403/5451d500af795919308b4828/html5/thumbnails/45.jpg)
Residual Analysis – First City Real Estate