Simple Linear Regression Flashcards
What is “regression analysis”?
allows us to test the hypothesis about the relationship between two variables, by quantifying the strength of the relationship between the two variables.
What is the “Sum of Squares Total” (SST)?
A measure of total variation in the dependent variable in a simple linear regression.
What is a “Dependent Variable”
a variable that is explained by a regression model.
What is a simple linear regression (SLR)?
An approach for estimating the linear relationship between a dependent variable and a single independent variable by minimizing the sum of the squared deviations between the fitted line and observed values.
What does the “Error Value” represent?
the expected error.
What are “Regression Coefficients”?
the collective term for the intercept and slow coefficients in the regression model.
What is a “residual”?
The amount of deviation of an observed value of the dependent variable from its estimated value based on fitted regression line.
What is “sum of squares error” (SSE)?
a measure of the total deviation between observed and estimated values of the dependent variable.
What is “Homoskedasticity”?
A constant variance across all observations.
What is “Heteroskedasticity”?
A non-constant variance across all observations.
In a linear regression, what are “estimated parameters”?
ESTIMATED PARAMETERS are the intercept and slope of the fitted line.
What is the “Coefficient of Determination” (R2)?
the percentage of the variation of the dependent variable that is explained by the independent variable.
It is a measure of the goodness of fit of a regression model.
What is an “indicator variable”
a variable that takes on only one of two values (0 or 1) based on a condition.
