Quantitative Analysis for Management, 13/e

Appendix 4.1: Formulas for Regression Calculations

When performing regression calculations by hand, there are other formulas that can make the task easier and are mathematically equivalent to the ones presented in the chapter. These, however, make it more difficult to see the logic behind the formulas and to understand what the results actually mean.

When using these formulas, it helps to set up a table with the columns shown in Table 4.7, which has the Triple A Construction Company data that were used earlier in the chapter. The sample size (n) is 6. The totals for all columns are shown, and the averages for X and Y are calculated. Once this is done, we can use the following formulas for computations in a simple linear regression model (one ...