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Quantitive Analysis with Excel > Linear Regression > Flashcards

Flashcards in Linear Regression Deck (38)
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1

What does a slope of 2 mean?

That every 1-unit change in X yields a 2-unit change in Y

2

What is the formula to find the slope?

Rise/Run

3

What is the formula to find linear?

Y = Mx + B

4

What measures the relative strength of the linear relationship between two variables?

Correlation

5

True or False:

Correlation is unit-less

True

6

What is the range of correlation?

-1 and 1

7

Fill in the Blanks:

The closer correlation is to -1, the ______ the ______ linear relationship

1. Stronger
1. Negative

8

Fill in the Blanks:

The closer correlation is to 1, the ______ the ______ linear relationship

1. Stronger
2. Positive

9

Fill in the Blanks:

The closer correlation is to 0, the ______ any ______ linear relationship

1. Weaker
2. Positive

10

What measures the strength and direction of the linear relationship?

The Coefficient of Correlation

11

How do you know when a scatter plot has a correlation coefficient of -1?

The dots form a downward line

12

How do you know when a scatter plot has a correlation coefficient of 1?

The dots form a upward line

13

How do you know when a scatter plot has a correlation coefficient of 0?

The dots form a straight line

14

How do you know when a linear correlation has no relationship on a scatter plot?

The dots are scattered everywhere

15

How do you know when a linear correlation has a relationship on a scatter plot?

The dots are clustered together

16

True or False:

In linear correlation, the two variables are treated as equals

True

17

Fill in the Blanks:

In linear regression, one variable is considered the ________ variable while the other is considered the ________ variable

1. Independent
2. Dependent

18

In linear regression which variable is considered the independent variable?

X

19

In linear regression which variable is considered the dependent variable?

Y

20

What is another name for the x variable in linear regression?

The predictor

21

What is another name for the y variable in linear regression?

The outcome

22

What is the difference between linear regression and correlation?

Correlation tells if two things travel together while Regression tells if one thing can predict another

23

List the 4 things that linear regression assumes

1. The relationship between X and Y is linear
2. Y is distributed normally at each value of X
3. The variance of Y at every value of X is the same
4. The observations are independent

24

Which function provides the correlation coefficient (r)?

The CORREL function

25

Which function provides r-squared?

The RSQ function

26

Which function provides the y-intercept?

The INTERCEPT function

27

Which function returns the best fit line against x values?

The TREND function

28

What should you do if you have more than 1 causal (i.e. X) variable?

Use multiple linear regressions

29

What is the percentage variation explained by the X variables?

The adjusted r square

30

What does it indicate when the significance F is < .05?

That regression is significant at 95% confidence level