/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 43 The table below gives a small se... [FREE SOLUTION] | 91Ó°ÊÓ

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The table below gives a small set of data. Which of the following two lines fits the data better: \(\hat{y}=1-x\) or \(\hat{y}=3-2 x ?\) Use the least squares criterion to justify your answer. (Note: Neither of these two lines is the least-squares regression line for these data. $$\begin{array}{lccccc}\hline x: & -1 & 1 & 1 & 3 & 5 \\ y: & 2 & 0 & 1 & -1 & -5 \\\\\hline\end{array}$$

Short Answer

Expert verified
\( \hat{y} = 1 - x \) fits better as it has a lower sum of squared errors (3 vs. 18).

Step by step solution

01

Understand the Problem

We need to compare two functions \( \hat{y}=1-x \) and \( \hat{y}=3-2x \) to the given data set \((x, y)\) and determine which one better fits the data using the least squares criterion. The criterion aims to minimize the sum of squared differences between the observed \( y \) values and the predicted \( \hat{y} \) values.
02

Calculate Errors for \(\hat{y} = 1-x\)

For each \( x \) value in the data set, calculate the predicted \( \hat{y} \) from the line \( \hat{y} = 1-x \), then find the error \( e = y - \hat{y} \). Finally, calculate \( e^2 \).- For \( x = -1 \), \( \hat{y} = 1 - (-1) = 2 \). Error, \( e = 2 - 2 = 0 \), so \( e^2 = 0 \).- For \( x = 1 \), \( \hat{y} = 1 - 1 = 0 \). Error, \( e = 0 - 0 = 0 \), so \( e^2 = 0 \).- For \( x = 1 \), \( \hat{y} = 1 - 1 = 0 \). Error, \( e = 1 - 0 = 1 \), so \( e^2 = 1 \).- For \( x = 3 \), \( \hat{y} = 1 - 3 = -2 \). Error, \( e = -1 + 2 = 1 \), so \( e^2 = 1 \).- For \( x = 5 \), \( \hat{y} = 1 - 5 = -4 \). Error, \( e = -5 + 4 = -1 \), so \( e^2 = 1 \).Total \( \sum e^2 = 0 + 0 + 1 + 1 + 1 = 3 \).
03

Calculate Errors for \(\hat{y} = 3-2x\)

For each \( x \) value in the data set, calculate the predicted \( \hat{y} \) from the line \( \hat{y} = 3-2x \), then find the error \( e = y - \hat{y} \). Finally, calculate \( e^2 \).- For \( x = -1 \), \( \hat{y} = 3 - 2(-1) = 5 \). Error, \( e = 2 - 5 = -3 \), so \( e^2 = 9 \).- For \( x = 1 \), \( \hat{y} = 3 - 2(1) = 1 \). Error, \( e = 0 - 1 = -1 \), so \( e^2 = 1 \).- For \( x = 1 \), \( \hat{y} = 3 - 2(1) = 1 \). Error, \( e = 1 - 1 = 0 \), so \( e^2 = 0 \).- For \( x = 3 \), \( \hat{y} = 3 - 2(3) = -3 \). Error, \( e = -1 + 3 = 2 \), so \( e^2 = 4 \).- For \( x = 5 \), \( \hat{y} = 3 - 2(5) = -7 \). Error, \( e = -5 + 7 = 2 \), so \( e^2 = 4 \).Total \( \sum e^2 = 9 + 1 + 0 + 4 + 4 = 18 \).
04

Compare the Sum of Squares

The sum of squared errors for \( \hat{y} = 1 - x \) is 3, while for \( \hat{y} = 3 - 2x \) it is 18. According to the least squares criterion, the line that minimizes the sum of squared errors better fits the data. Therefore, \( \hat{y} = 1 - x \) provides a better fit than \( \hat{y} = 3 - 2x \).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Sum of Squared Errors
The Sum of Squared Errors (SSE) is a key concept in statistics, specifically in the realm of regression analysis. It is used to measure how well a model's predicted values match the actual observed data. The process begins by calculating the difference between the actual and predicted values, known as the error. Once the errors are found for each data point, they are squared and summed up to provide the SSE. Squaring the errors ensures that all differences are positive and amplifies larger errors more than smaller ones.

In our specific problem, the goal was to determine which line, among the options given, fits the dataset better by using the SSE. The formula for the sum of squared errors is:
  • For each observed value (\(y\)) and predicted value (\(\hat{y}\)), find the error: \(e = y - \hat{y}\).
  • Square each error: \(e^2\).
  • Compute the total: \(\sum e^2 = \sum (y - \hat{y})^2\).
The smallest SSE indicates the best fitting model since it means the predicted values are closest to the observed ones.
Regression Line
A Regression Line represents the best estimate of the relationship between the independent variable (in this case, \( x \)) and the dependent variable (\(y\)). It is a line drawn through the data points in a scatterplot to show the overall trend.

In this exercise, two candidate lines are proposed: \(\hat{y} = 1 - x\) and \(\hat{y} = 3 - 2x\). These lines are not true least squares regression lines but are instead being tested to find which is closer to being that by using the SSE.
  • The slope of the line decides if the line rises, falls, or stays constant as \(x\) moves forward.
  • The intercept determines the point where the line crosses the y-axis.
A regression line helps us to make predictions for \(y\) given new \(x\) values. The line’s goodness of fit can be visually checked by how broadly data points scatter around it.
Data Fitting
Data Fitting is an essential concept in data analysis where we aim to model the observed data points accurately using a mathematical function. The purpose of fitting data is to describe the general trend exhibited by the data and make predictions.

In the given exercise, the aim was to fit two proposed lines to the dataset provided. Using the least squares method enables us to quantify how well each line fits, by determining how much the predicted values from the line deviate from actual observed values
Key aspects of Data Fitting include:
  • Choosing a model: In this example, a linear model.
  • Estimating parameters: Use the given formulas to plot lines and adjust them based on the data.
  • Evaluating fit quality: Done by calculating measures like the SSE.
Good data fitting helps enhance the reliability of predictions made using the regression line.

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