Linear Regression Analysis - Y Intercept Calculation

Y Intercept of Regression Line

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Question

Given the following points: (-2, 0), (-1,0), (0,1), (1, 1) and (2, 3) What is the Y intercept of the regression line?

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A

For this, you need to create tables with columns for X,Y,XY,X^2,Y' and Y-Y'. This will be as follows.

XYXY X^2 Y'Y-Y'

-2004-0.40.4

-10010.3-0.3

010010

11111.7-0.7

23642.40.6

Sum057100 -

N=5.

The regression equation is Y' = a + bX.

First, find the slope, which is b, use the formula

b = [n(SXY)-(SX)(SY)]/[n(SX^2)-(SX)^2] where S stands for "Sum of." b = [5(0)-(0)(5)]/[5(10)-0]=0.7

The Y intercept is a.

a = [S(Y)/n]-b[SX/n]

a = 5/5 - 0.7[0/5] = 1.

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