CHAPTER 12

SIMPLE REGRESSION

12.1 Introduction

Linear regression is a data analysis technique used to determine the extent to which the
independent variable influences the dependent variable. There are two types of linear
regression namely simple linear regression and multiple linear regression. In simple linear
regression only one independent variable is used to predict the value of one dependent variable.

Simple Linear Regression Equation

Simple linear regression is a statistical method that allows us to summarize and study the
relationship between two quantitative variables or more precisely study the influence of an
independent variable on a dependent variable. A simple linear regression equation is as follows;

Ŷi = b 0 + b1X i

where
Ŷi = Estimator of Y value (dependent variable)
b 0 = Y intercept (value of Y when X is assumed to be zero)
b 1 = Estimator of the slope of the regression line
Xi = Value of X (independent variable/predictor)

Example;

Ŷi = b 0 + b1X i
Ŷi = 8.843 + 4.764 X i

where,
𝑌̂𝑖 = 𝑒𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑡𝑒𝑠𝑡 𝑠𝑐𝑜𝑟𝑒𝑠
𝑋𝑖 = 𝑠𝑡𝑢𝑑𝑦 ℎ𝑜𝑢𝑟𝑠 (𝑝𝑒𝑟 𝑤𝑒𝑒𝑘)

4.764 Xi means that for every unit (study hour) that increases in a week, the monthly test score
obtained is estimated to increase by 4.764 points.

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Question: Student A has studied for 10 hours a week. How much is the estimated monthly test
score obtained?

Ŷi = 8.843 + 4.764 X i

Ŷi = 8.843 + 4.764 (10)
= 56.5%

12.2 SPSS Procedure for Simple Regression

Instructions: Open Data Chapter 12 _Simple regression

1. Click Analyze > Regression > Linear

See the display below;

1. Click Salary. Enter in the Dependent box.

2. Click Experience. Enter in the Independent(s) box.
See the display below;

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 1. Click OK.

See the output below;

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .987a .974 .973 273.132
a. Predictors: (Constant), Experience

Jadual Model Summary

R: The correlation coefficient tells us how strong the relationship is between

the independent variable and the dependent variable. The value of R = 0.987
shows a very strong positive relationship between the dependent variable
which is monthly salary and the independent variable or predictor which is
work experience.

R Square : It is a measure of how much variation or variability in the dependent variable

can be explained by the predictor variable. The value of R2 = 0.974 shows
that about 97.4% of the variation in the model consisting of salary can be

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 explained by the predictor variable which is work experience. This also
means that only 2.6% ( 1.0 - 0.974 = 0.026 @ 2.6%) of the variation is
unexplained.

Adjusted R Gives us an idea of how this model is as close as possible to the R2 value. In
Square : this example, the difference is very small (0.987 - 0.974 = 0.013 or 1.3%).
This means that if the model is derived from the population (not a sample)
then it will account for less than 1.3% of the variation in the dependent
variable.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 119656516.032 1 119656516.032 1603.954 <.001b
Residual 3207841.746 43 74600.971
Total 122864357.778 44
a. Dependent Variable: Salary
b. Predictors: (Constant), Experience

ANOVA TABLE

If ρ < 0.05, then the test is significant (Work experience is a significant predictor of salary).
If ρ > 0.05, then the test is not significant (Work experience is not a significant predictor of
salary).

Based on the ANOVA table above, it was found that the ρ-value is 0.000 < 0.05. So the results
show that work experience is significant (Work experience is a significant predictor of salary).

APA format writing (Using ANOVA tables):

Work experience is a significant predictor of salary , Ϝ (1, 43) = 1603.954,

ρ = .000, R2 =.974

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 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 830.262 90.937 9.130 <.001

Experience 249.648 6.233 .987 40.049 <.001

a. Dependent Variable: Salary

For simple regression, the ρ-value = 0.000 in the ANOVA table is the same as the ρ-value in the
coefficients table above. In addition, in this simple regression the F value in the ANOVA table is
the same as the t2 value in the regression coefficient table above (F = t2 ) which is 1603.954 =
40.0492

The test results show that the regression model is significant at the significance level of 0.05 or α
< 0.05. Work experience is a significant predictor of salary, β = 249.648, t(43) = 40.05, ρ = 0.00,
R2 = .974

The equation for simple linear regression is as follows;

Ŷi = b 0 + b1X i

Ŷ Salary = 830.262 + 249.648 (experience)

Question : What is the estimated salary (per month) if employee A has 15 years of
work experience?

Answer : Ŷ Salary = 830.262 + 249.648 (15) = 4,574.98

(The estimated monthly salary for employee A with 15 years of work experience
is RM4,574.98)

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