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Regression and Spatial Regression;Regression Analysis
Simple Linear Regression Model
Multiple Linear Regression Model
Additional Topics in Regression Analysis
Spatial Regression
Spatial Autoregressive Models
Geographically Weighted Regression
;2;3;4;5;6;Regression Analysis
Simple Linear Regression Model
Multiple Linear Regression Model
Additional Topics in Regression Analysis
Spatial Regression
Spatial Autoregressive Models
Geographically Weighted Regression
;Simple Linear Regression Model
Changes in Y are assumed to be caused by changes in X
The relationship between X and Y is described by a linear
function
Linear regression population equation model:
;9;Linear Regression Model Assumptions
The true relationship form is linear (Y is a linear function of X,
plus random error)
The error terms, εi are independent of the x values
The error terms are random variables with mean 0 and constant
variance, σ2
The random error terms, εi, are not correlated with one another, so that
;Ordinary Least Squares (OLS)
the standard criteria for obtaining the regression line
b0 and b1 are obtained by finding the values of b0 and b1 that
minimize the sum of the squared differences between y and:
;Simple Linear Regression Example
A real estate agent wishes to examine the relationship between
the selling price of a home and its size (measured in square feet)
A random sample of 10 houses is selected
Dependent variable (Y) = house price in $1000s
Independent variable (X) = square feet
;13;Example
Here, no houses had 0 square feet, so b0 = 98.24833 just indicates that, for houses within the range of sizes observed, $98,248.33 is the portion of the house price not explained by square feet
Here, b1 = .10977 tells us that the average value of a house increases by .10977($1000) = $109.77, on average, for each additional one square foot of size
;Measures of Variation
Total variation is made up of two parts:
;16;Coefficient of De
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