dw 1 and pre-class 1

Question 1

when x increase by one unit - assuming the x term is without a log

Answer 1

• y increases by beta
• log y increases [beta * 100 ]%

Question 2

when x increases by 1 % -assumign x term is with a log

Answer 2

• y increase by beta / 100
• log y increase by beta %

Question 3

how to constuct a CI?

Answer 3

• when we are given the percentage ex: 80% we subtract from 100-80 and divide by two since it is two-tailed => 10% in each tail
• then we get the z-score for the upper tail => 90%
• then we calculate the formula: beta = b+- z-score*se(b)
• we calculate both values and this is the confidence interval

Question 4

how to make a power of test?

Question 5

how to calculate the standard error of regression?

Answer 5

• it is the squared root of the variance of the regression => it is the squared root of the RSS / DoF of RSS