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Understanding the Formula slope = r (Sy/Sx) Al Coons Buckingham Browne & Nichols School Cambridge, MA

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Presentation on theme: "Understanding the Formula slope = r (Sy/Sx) Al Coons Buckingham Browne & Nichols School Cambridge, MA"— Presentation transcript:

1 Understanding the Formula slope = r (Sy/Sx) Al Coons Buckingham Browne & Nichols School Cambridge, MA

2 The Confusion In linear regression: m =r(Sy/Sx). So the slope of a LSR model depends on three variables: r, Sy & Sx. Typical Explanation “In general, moving any number of standard deviations in x moves r times that number of standard deviations in y.” BVD. Ed 3. P. 174.

3 The Confusion In linear regression: m =r(Sy/Sx). So the slope of a LSR model depends on three variables: r, Sy & Sx. A Question Can we understand the interactions of r, Sy, & Sx?

4 First Look: Keeping Sy and Sx Constant Task In linear regression: m =r(Sy/Sx). Draw two different data sets in which Sy and Sx are unchanged yet r is different.

5 slope = r (Sy/Sx)=? S y =? S x =2.16 S y =8.64 r = ? S x =? S y =8.64 r = 1 r =.214 S x = slope = r (Sy/Sx)=? slope = r (Sy/Sx) =.214(8.64/2.16) ~.856 slope = r (Sy/Sx) =.214(8.64/2.16) ~.856 slope = r (Sy/Sx) =1(8.64/2.16) = 4

6 Second Look: Keeping r and Sx Constant Task In linear regression: m =r(Sy/Sx). Draw two different data sets in which r and Sx each are unchanged yet r is different.

7 slope = r (Sy/Sx)=? Sy=?Sy=? S x =2.16 r = ? S x =? S y =8.64 r =.214 S x = slope = r (Sy/Sx)=? slope = r (Sy/Sx) =.214(4.32/2.16) ~.428 slope = r (Sy/Sx) =.214(4.32/2.16) ~.428 slope = r (Sy/Sx) =.214(8.64/2.16) = S y =4.32 What is the transformation?


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