Busan regression Flashcards
(5 cards)
1
Q
P value
A
p-value is defined as the lowest level of significance
at which the null hypothesis can be rejected. In other words, the exact probability of Type 1 error
2
Q
Omitted variable bias
A
When a regression excludes a relevant
variable, the bias in the estimated coefficient
on the included variable depends on:
the excluded variables must
be relevant and correlated with the included
variables
3
Q
Multicollinearity
A
When explanatory variables are highly correlated with each other
4
Q
R squared is between
A
0 and 1. 1 is perfect fit. 0 means x has no predicitve power.
5
Q
Dummy Variables are represented as
A
0 or 1
