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Flashcards in Regression Analysis Deck (15)
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1

regression analysis

the study of the dependence of one variable

2

correlation analysis

measure the strength or degree of linear association between two variables
ex. correlation between smoking and lung cancer

3

explanatory variable

same as independent variable

4

simple regression

studies the dependence of a variable only on a single explanatory variable

5

multiple regression

one dependent variable but multiple independent variables

6

time series data

a set of observations on the values that a variable takes at different times

7

cross-sectional data

data of one or more variables collected at the same point in time

8

multiple regression formula

Y = B(0) + B(1)X(1)+... B(n)X(n) + error

big B = whole population
small b = sample (estimated)

9

B(0)

intercept term
can be interpreted as the average effect on Y of all the variables excluded from the model

10

ordinary least squares

method of fitting a straight line to a sample of data

11

R squared

measures how well the estimated regression fits the data (how close to the line it is)

from 0 -1
the higher the value the higher the quality of the model

12

adjusted r squared

same as r squared but for more variables to avoid overestimating the impact of adding an independent variable

13

F-test

overall significance
shows if there is a linear relationship between all of the x variables considered together and y

14

f-test conclusions

p-value < 5% then reject the null hypothesis and x is significant in explaining y

p-value > 5% cannot reject the null hypothesis and x is not significant

15

null hypothesis

no statistical significance exists

attempts to show that a single variable is no different than 0