Chapter 9 Flashcards
(15 cards)
alternative hypothesis
the theory based hypothesis that is the opposite of the null hypothesis (the one we are trying to prove)
directional hypothesis
an alternative hypothesis in which the expected relationship is either positive or negative
Ordinary Least Squares (OLS)
most popular method for computing sample regression models
parameter
synonym for boundary, the value of an unknown population characteristic
parameter estimate
a sample based calculation of a population characteristic
population error term
in the population regression model, the difference between the model based predicted value of the dependent variable and the true value of the dependent variable
population regression model
a theoretical formulation of the proposed linear relationship between at least one independent variable and a dependent variable
residual
same as population error term
root mean squared error (root MSE)
a calculation of “goodness-of-fit” made by squaring each sample error term, summing them up, dividing by number of cases, and then taking the square root, also known as the model standard error
R^2 statistic
a goodness of fit measure that varies between 0-1 representing the proportion of variation in the dependent variable that is accounted for in the model
sample error term
in the sample regression model, the sample based estimate of the residual
sample regression model
a sample based estimate of the population regression model
statistical model
a numerical representation of a relationship between at least one dependent and independent variable
stochastic
random
t-ratio
the ratio of an estimated parameter to its estimated standard error
