1.3. Interpreting the slope and intercept, prediction and residuals#
Next, we’ll practice how to interpret the regression coefficients, and
how to use the regression equation to get a predicted value of
1.3.1. Example 1: Weather patterns and crops#

This is a real example from an old study by Pitt and Heady (1978) in
the journal of Ecology. The study, on the “Response of Annual
Vegetation to Temperature and Rainfall Patterns in Northern
California”, found that the impact of weather patterns on standing
crop (the total number of crops in a particular area at a given time),
could be predicted by the following predictive equation:
Use words to interpret the y-intercept and the slope.
Click to reveal answer
The y-intercept is the value of
The slope then tells us how much we can expect
Find the predicted June standing crop rates for a mean minimum temperature of 7.7°C. (Again, for now, use a calculator, Excel, or do a rough calculation on paper)
Click to reveal answer
Imagine we changed the units of temperature (which is our
-variable) so that they are in Fahrenheit rather than Celsius. Without doing any calculations, what do you think will happen to the regression coefficients? Will the slope value change, the intercept, both, or neither?
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Both the slope will change (because it is in different units), and the intercept (as the line will cross the y-axis at a different point)
1.3.2. Example 2: GDP vs CO2#

For recent UN data from 39 countries on
Use your calculator or excel for the next couple of questions.
Predict
at the (i) minimum -value of 0.8, and (ii) maximum of 34.3.
Click to reveal answer
(i)
(ii)
For the U.S.,
Click to reveal answer
The residual is the difference between the observed and predicted
value of (
For the U.S., we know from the first question that, for
If the residual was a negative number, then it would suggest that that country is producing less CO2 emissions than predicted by the regression line.