STATISTICS and PROBABILITY

Week 7 - 8
Learning Competencies:
1. identify the slope and y-intercept from the equation of the regression line.
2. calculate the slope and y-intercept of the regression line; and
3. formulate the equation, determine the relationship between variables based on the slope.
4. interpret the computed slope and y-intercept of the regression equation.
5. estimate the value of dependent variable from the value of the independent variable.
6. solve regression analysis problems from real-life situations.
Slope and Y-Intercept of a Regression Line

One important application of statistics is that it allows us to predict one variable from other variables. For example, you
might want to predict the amount of income from the number of years spent studying. This can be done through
regression analysis. Regression analysis mathematically describes the relationship between independent variables and a
dependent variable.

One type of regression is linear regression. Linear regression consists of finding a best-fitting straight line on a scatter plot
of sample data. The slope and y-intercept of the regression line play an important role in analyzing a set of data. The slope
indicates the steepness of a regression line and the y-intercept indicates the location where it intersects the y-axis. The
slope and the y-intercept define a linear relationship between two variables and can be used to estimate an average rate
of change.

Whenever there are more than two points of data, it is usually impossible to find one line that passes through all points.
However, a best-fit line that is a good approximation of the data can usually be found. This best-fit straight line used to
predict the value of y for a given value of x is called the regression line.

For statistics, there is a simpler way to find the equation of the best-fit line. The equation of the best-fit line is also called
equation of the regression line or simply regression equation.

In real life, however, students need to calculate the slope and y-intercept from the raw data. The y-intercept and slope
can be solved using the step-by-step solution and formulas for finding the slope and y-intercept.

The steps in calculating the slope and y-intercept from a given set of data are the following:

Step 1: Make a data table with four columns (x, y, xy, and x 2). Note the sample size, n.

Step 2: List the data for x and y. Multiply x and y to get xy. Square x to get x 2. Complete the table.

Step 3: Find the sum of x, y, xy, and x2 by adding the values in each column.

Step 4: Substitute the solved values into the corresponding formula.

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ACTIVITY 1.

Interpreting the Calculated Slope and Y-Intercept of the Regression Line

For you to be able to interpret the slope and y-intercept, it is important that you have mastered skills in identifying the
slope and y-intercept of a regression equation. Furthermore, you should be able to compute the values of the slope.

Based on the slope, you can determine the relationship between the variables and then, interpret its meaning related to
the situation. The sign of the slope (b) is used to identify the trend or direction of relationship between the dependent
and independent variable.

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 Predicting the Value of Dependent Variable Given the Value of Independent Variable

Regression equations can be used to make predictions. The field of statistics that deals with prediction is called regression
analysis. In this lesson, you will learn how to estimate and predict the value of one variable in terms of the other variable.

In predicting the dependent variable y, just substitute the given value of x into the equation 𝑦̂=𝑏𝑥+𝑎.

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 Solving Problems Involving Regression Analysis

By now, you already know that regression analysis can be used in making estimations and predictions. Specifically, linear
regression allows us to make predictions when a variable (y) is dependent on a second variable (x) based on the regression
equation of a given set of data. This also holds true in real-life situations.

Example:

Fifteen (15) randomly selected Grade 11 students took a Math Aptitude Test before they started their Statistics and
Probability subject. What regression equation best predicts performance in the First Periodical Test in Statistics based on
Math Aptitude Test? If a student got a score of 42 on the Math Aptitude Test, what score would the student expect in the
First Periodical Test in Statistics?

1. identify the independent variable (x) and dependent variable (y).

“Statistics First Periodical Test (y)depends upon the Math Aptitude Test (x).”

2. Then, prepare a table of values. Solve for the slope and intercepts using the values from the table.

x y xy x2
38 25 950 1444
35 20 700 1225
30 17 510 900
28 15 420 784
25 12 300 625
24 15 360 576
20 18 360 400
18 10 180 324
16 12 192 256
15 10 150 225
12 10 120 144
10 10 100 100
8 7 56 64
7 6 42 49
5 5 25 25
291 192 4465 7141

Therefore, the regression equation is 𝒚̂=𝟎.𝟒𝟗𝟒𝟗𝒙+𝟑.𝟐

Using this regression equation, we can predict scores in the Statistics Periodical Test given a score
in the Math Aptitude Test. If a student got a score of 42 in the Math Aptitude Test, then x = 42.
Solution:
𝒚̂=𝟎.𝟒𝟗𝟒𝟗(𝟒𝟐)+𝟑.𝟐
= 𝟐𝟎.𝟕𝟖𝟓𝟖+𝟑.𝟐
=𝟐 𝟑.𝟗𝟗
= 𝟐𝟒
Therefore, if a student got a score of 42 in the Math Aptitude Test, the student would expect a score of 24 in the First
Periodical Test in Statistics.

YOUR TURN! (Activity 2)

1. Aling Maring sells tomatoes in Tayabas Market in support to the local farmers of the City. She decided to change
the price of her tomatoes every day for 7 days to see if the change in the price of tomatoes would affect sales.
How many kilos of tomatoes may be sold if the price of tomatoes is 35 pesos per kilogram? Her collected data are
shown in the table below.

PRICE/KILO 45 50 55 40 52 48 60
NO. OF KILOS 30 25 25 40 26 35 15

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