Flashcards in Quant Deck (13):

1

## FORMULA: t test using r and n

### t = (r√(n-2)) / √(1-r^2 )

2

## Y1 = b0 +b1*X1, which is dependent and which is independent variable?

### Y is the dependent and X1 is the independent

3

## Simple linear regression assumption: does a linear relationship exist btwn dep and ind. variable?

### yes

4

## Simple linear regression assumption: is the independent variable correlated or uncorrelated with the residuals?

### uncorrelated

5

## Simple linear regression assumption: is the independent or dependent variable uncorrelated with the residuals?

### independent

6

## Simple linear regression assumption: what is the expected value of the residual term?

### zero

7

## is the variance of the residuals term constant or nonconstant for all observations?

### constant

8

## are the residuals for one obversation to another correlated or not?

### residual term is indepndently distirbution and they are not correlated

9

## Simple linear regression assumption: is the residual term normally distributed or not?

### normallay distributed

10

## FORMULA: Confidence interval

### predicted intercept + or - (tcritical * standard error)

11

## FORMULA: t test given the intercept, stand error and a given level of signif

### t = predicted intercept - given level of significance / stand. error

12

## FORMULA: SEE

### √(SSE )/(n-2)

13