Module 10.3 : Predicted Values & Functional Forms Of Regression Flashcards
(34 cards)
What are predicted values in regression analysis?
Values of the dependent variable based on estimated regression coefficients and a prediction about the independent variable.
In a simple regression, what is the formula for the predicted value of Y?
What does y-hat represent in the regression equation?
Predicted value of the dependent variable.
What does Xp represent in the regression equation?
Forecasted value of the independent variable.
Fill in the blank: The predicted value of the dependent variable is calculated using the formula Y = _______.
True or False: Predicted values are values of the independent variable based on estimated regression coefficients.
False
What is the equation for the confidence interval for a predicted value of Y?
This equation includes variables for the critical t-value, standard error, and the predicted value.
What does ‘tc’ represent in the confidence interval equation?
Two-tailed critical t-value at the desired level of significance with df = n - 2
‘df’ stands for degrees of freedom.
What does ‘sf’ represent in the confidence interval equation?
Standard error of the forecast
This is a crucial component in calculating the confidence interval.
What is the primary challenge in computing a confidence interval for a predicted value?
Calculating sf (standard error of the forecast)
This calculation is often provided in exam contexts.
On the Level I exam, will you likely need to calculate the standard error of the forecast?
No, it will probably be provided
This reduces the computational burden during the exam.
What does SEE^2 represent?
Variance of the residuals, the square of the standard error of estimate
What is one method to produce a linear relationship between two variables?
Transforming one or both of the variables
What is the common transformation used to analyze relationships between variables?
Taking the natural log of one or both of the variables
What is a Log-lin model?
A model where the dependent variable is logarithmic and the independent variable is linear
What describes a Lin-log model?
A model where the dependent variable is linear and the independent variable is logarithmic
Define a Log-log model.
A model where both the dependent variable and the independent variable are logarithmic
Fill in the blank: A _______ model has a logarithmic dependent variable and a linear independent variable.
Log-lin
Fill in the blank: A _______ model has a linear dependent variable and a logarithmic independent variable.
Lin-log
Fill in the blank: A _______ model features both dependent and independent variables as logarithmic.
Log-log
What is the equation for the Lin-Log Model?
In the Lin-Log Model, how is the slope coefficient interpreted?
As the absolute change in dependent variable for a relative change in the independent variable
In the Log-Log Model, how is the slope coefficient interpreted?
As the relative change in dependent variable for a relative change in the independent variable
Fill in the blank: In the Lin-Log Model, the equation includes the term __________.
