Group 3 :

Anas Abdul Malik (20160420075)

M. Rizky Darmawan (20160420094)

Prediction Test

On the topic of relationship testing it has been suggested that the appearance of a symptom is
often followed or preceded by other symptoms systematically. Two interrelated questions are (1) whether
there is a relationship between the observed symptoms, and (2) whether the appearance of a symptom
can be used to predict the appearance of other symptoms.

Correlation techniques are used to determine whether or not there is a connection between
symptoms. Meanwhile, regression analysis techniques are used to determine whether a symptom or
variable can be used to predict other symptoms or variables.

If a variable has a relationship with another variable, then that variable can be used to predict
other variables. However, these variables can not be used to predict the state of a variable if there is no
relationship between variables. Thus, the regression analysis test can only be used if there is a significant
relationship between the variables concerned.

Variable X referred to as independent variables, in regression analysis is often also referred to as

a predictor variable. The variable Y is referred to as a dependent variable or a criterion variable.

A. Regression Line Equation

The relationship between the predictor variable and the criterion variable is usually depicted in a
regression line. Regression lines are in the form of linear lines and some are curved. To prove
linear or not the regression line, linearity test is required. If the regression line is not linear, then
it must be calculated by the non linear regression line formula.

Linear regression line can be assumed by using equation of regression line. The equation is used
to predict the value of Y or the criterion variable based on the value of X or the predictor variable.
The formula of the regression equation with one predictor and one criterion variable is as follows.

𝑌̂ = 𝑎 + 𝑏𝑋

𝑌̂ = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑒𝑑 𝑌
𝑌 = 𝐶𝑟𝑖𝑡𝑒𝑟𝑖𝑜𝑛 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑋 = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑜𝑟 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑏 = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑜𝑟 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡
𝑎 = 𝐶𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑛𝑢𝑚𝑏𝑒𝑟
The regression line equation for two predictor variables is as follows.

𝑌̂ = 𝑎 + 𝑏1 𝑋1 + 𝑏2 𝑋2

𝑋1 = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑜𝑟 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 1
𝑋2 = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑜𝑟 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 2
𝑏1 = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑜𝑟 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 1
𝑏2 = 𝑃𝑟𝑒𝑑𝑖𝑐𝑡𝑜𝑟 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 2

The regression line equation for three predictor variables is as follows.

𝑌̂ = 𝑎 + 𝑏1 𝑋1 + 𝑏2 𝑋2 + 𝑏2 𝑋2
If the predictor variable is more than three, the above equation is added with bnXn, with N equals
to the number of predictor variable. To predict the value of X based on Y, the formula used is as
follows.

𝑥̂̂ = 𝑎 + 𝑏𝑌
The purpose of making the regression line is to predict the price of the criterion variable based
on the price of the predictor variable with the smallest possible errors. The goal can be stated if
the prediction error is zero. Predictive errors can be called residues