Methods and formulas for the model in Fit Regression Model

Select the method or formula of your choice.

Weighted regression

Weighted least squares regression is a method for dealing with observations that have nonconstant variances. If the variances are not constant, observations with:

  • large variances should be given relatively small weights
  • small variances should be given relatively large weights

The usual choice of weights is the inverse of pure error variance in the response.

The formula for the estimated coefficients is as follows:
This is equivalent to minimizing the weighted SS Error.


Xdesign matrix
X'transpose of the design matrix
Wan n x n matrix with the weights on the diagonal
Yvector of response values
nnumber of observations
wiweight for the ith observation
yiresponse value for the ith observation
fitted value for the ith observation

Box-Cox transformation

Box-Cox transformation selects lambda values, as shown below, which minimize the residual sum of squares. The resulting transformation is Y λ when λ ≠ 0 and ln(Y) when λ = 0. When λ < 0, Minitab also multiplies the transformed response by −1 to maintain the order from the untransformed response.

Minitab searches for an optimal value between −2 and 2. Values that fall outside of this interval might not result in a better fit.

Here are some common transformations where Y′ is the transform of the data Y:

Lambda (λ) value Transformation
λ = 2 Y′ = Y 2
λ = 0.5 Y′ =
λ = 0 Y′ = ln(Y )
λ = −0.5
λ = −1 Y′ = −1 / Y

Regression equation

For a model with multiple predictors, the equation is:

y = β0 + β1x1 + … + βkxk + ε

The fitted equation is:

In simple linear regression, which includes only one predictor, the model is:

y=ß0+ ß1x1+ε

Using regression estimates b0 for ß0, and b1 for ß1, the fitted equation is:


xkkth term. Each term can be a single predictor, a polynomial term, or an interaction term.
ßkkth population regression coefficient
εerror term that follows a normal distribution with a mean of 0
bkestimate of kth population regression coefficient
fitted response

Design matrix

The design matrix contains the predictors in a matrix (X) with n rows, where n is the number of observations. There is a column for each coefficient in the model.

Categorical predictors are coded using either 1, 0 or -1, 0, 1 coding. X does not include a column for the reference level of the factor.

To calculate the columns for an interaction term, multiply all of the corresponding values for the predictors in the interaction. For example, suppose the first observation has a value of 4 for predictor A and a value of 2 for predictor B. In the design matrix, the interaction between A and B is represented as 8 (4 x 2).

x'x inverse

A p x p matrix, where p is the number of coefficients in the model. Multiplying x'x inverse by MSE produces the variance-covariance matrix of the coefficients. Minitab also uses the x'x inverse to calculate the regression coefficients and the hat matrix.
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