Flashcards in Quant Deck (13):
FORMULA: t test using r and n
t = (r√(n-2)) / √(1-r^2 )
Y1 = b0 +b1*X1, which is dependent and which is independent variable?
Y is the dependent and X1 is the independent
Simple linear regression assumption: does a linear relationship exist btwn dep and ind. variable?
Simple linear regression assumption: is the independent variable correlated or uncorrelated with the residuals?
Simple linear regression assumption: is the independent or dependent variable uncorrelated with the residuals?
Simple linear regression assumption: what is the expected value of the residual term?
is the variance of the residuals term constant or nonconstant for all observations?
are the residuals for one obversation to another correlated or not?
residual term is indepndently distirbution and they are not correlated
Simple linear regression assumption: is the residual term normally distributed or not?
FORMULA: Confidence interval
predicted intercept + or - (tcritical * standard error)
FORMULA: t test given the intercept, stand error and a given level of signif
t = predicted intercept - given level of significance / stand. error