Aspects of regression Flashcards
(7 cards)
Checklist for OLS accuarcy estimates (3)
- Significant number of data points/sample variables 2. Significant range/variability of x-variables 3. Significantly low error/scattered variables
What does a 95% confidence indicator for ß prove?
That if you repeatadly use the CI formula, 95% of the intervals constructed will contain ß
If ß=0 then X…
has no explanatory value
2 ways to test if ß=0
- The CI contains 0
- t-statistic (ß estimate/standard error)
If P value (t-test) greater than 0.05 show
t is small therefore ß=0
When are tests for R2 and ß=0 the same?
In simple regression
If P value (F-test) greater than 0.05 then…
R2=0