Understanding Statistics					 J.R. Rasmussen

					Class 15 Outline

I) Today's Class

	A) Review of last class:  Bivariate data
		1) scatter diagram
		2) Pearson correlation coefficient
	B) Bivariate data continued
		1) least square line
		2) forecasting using the least square line

	C) UWB course evaluation 

	D) Homework working session


II) Schedule for remainder of the quarter

	A) Assignment 7 due Monday 8/15/11
	B) Quiz 3 on Monday 8/15/11:  in class, open book
	C) All late assignments due by Monday 8/15/11
	D) No class on Wednesday 8/17/11


III) Review of last class

	A) Any open items or questions

	B) Bivariate data
		1) scatter diagram  (how to do on Excel)
		2) correlation coefficient  (Pearson, how to do on Excel)


IV) Bivariate data techniques revisited & continued

	A) Scatter diagram
		1) Group exercise: class hand out regression problem 	
		part (a) only
	B) Pearson correlation coefficient: denoted by r
		1) Group exercise: calculate for r for our data
	C) Least square line
		1) intuitive idea  (picture)
		2) how to do on Excel (two methods)
			a) linest(y values, x values)
			b) using chart tools to draw the line and equation
		3) Group problem:  calculate for our data

	D) Do part (c) of the hand out

	E) How to forecast using the line 
		1) Group problem: now do part (d) of the hand out
		2) Group problem:  now do part (e) of the hand out
	F) Group exercise: do part (f) of the hand out

	G) rē measures the proportion of variation in y that 
	can be attributed to an approximate linear relationship between x and y (page 242)
		1) use this to do part (f) of hand out 
		2) how to use Excel to place rē on the scatter diagram

V) Break (check homework assignment records)

VI) Least square line  (continued)

	A) How to forecast using the line 
		1) inflation, mortgage rate example
		2) forecasting sales trend

VII) UWB course evaluation

VIII) Quiz 3
	A) material covered on Quiz 3
		1) hypothesis testing
		2) bivariate data
		3) averages and standard deviations from week one of class and Z, and t tables (or Excel)

IX) Homework

	A) Work session on assignment 7 due Monday 8/15/11