POWERPOINT 4

Question 1

quantity of interest

Answer 1

response variable

Question 2

other data that could influence our prediction

Answer 2

explanatory variables

Question 3

most widely used statistical tool for understanding relationships among variables; investigates functional relationships between one or more explanatory variables and an outcome of interest- the response variable

Answer 3

regression analysis

Question 4

Y =f(X1,X2,…,Xp)+e
f(X1,X2,…,Xp) is a deterministic function of X1, X2,…,Xp
e is a random noise term

Answer 4

regression model general relationship

Question 5

Y = b0 + b1X
b0 = intercept
b1 = slope in units of y/x

Answer 5

equation of a line

Question 6

minimizing the amount by which the fitted value differs from the actual value
ei = Yi -Yˆi

Answer 6

residual

Question 7

the line represents the ? values given by

Yˆi = b0 + b1X1

Answer 7

fitted value

Question 8

N

chooses b0 and b1 to minimize

Answer 8

Least Squares

Question 9

compares the predictive ability of each model
N N
1/n

Answer 9

average squared error