Stats Exam #2 Flashcards
(151 cards)
When interpreting a graph, what is the correct order: variable () versus variable ()
Y versus X
There are four things to look for in scatterplots. What are they?
Direction ( + or -)
Form (linear/non)
Strength (strong/weak)
Unusual Features (outliers, groups, clusters)
What are the three Correlation Conditions?
Quantitative Variables (2 quants)
Straight Enough
No outliers
What is the Linear Model equation? Interpret its components.
Y hat = B0 + B1X
Y- hat: predicted value
B0: y-intercept
B1X: slope
The Linear Model is the model that “______” the data.
best fits
True or False: The line of “best fit” has the LEAST error.
True
What is the Residual equation, and what does it do?
Residual = observed value - predicted value
e = y - y hat
This explains the errors in the model.
If the residual model fits well, residuals will all be close to what number?
0
Ex: A popular food item is said to have 31 grams of protein and 36.6 grams of fat. It actually has 22 grams of fat. If X = grams of protein, Y = grams of fat, and the line of fit for the module is Fat hat = 8.4 + 0.91(protein), calculate the residual for this observation & interpret.
y hat = 8.4 + 0.91(31) = 36.6
e = 22 - 36 = (-14.6)
Actual data is 14.6 grams of fat less than what the model predicts.
True or False: Line with the MOST residual value is the linear model.
False
The std. dev. of the model is the distance from y-bar. When finding std. dev. what is done to the residual values?
They are squared to make all values positive. Best fitting will have the least amount of squared residuals.
Interpret b0 and b1.
b0 = y-intercept and is where the line crosses the y-axis.
b1 = slope of the line that explains how rapidly y hat changes as a result of x.
Interpret this linear module’s slope. Fat hat = 8.4 + 0.91(protein)
b1 = 0.91(protein)
For every additional gram of protein, expect there to be an additional 0.91 grams of fat, on average.
Interpret this linear module’s y-intercept. Fat hat = 8.4 + 0.91(protein)
b0 = 8.4 grams of fat
An item with 0 grams of protein would expect to have 8.4 grams of fat.
True or False: the X variable can be practical or non-practical.
True
Ex:
y = avg. home game attendance per year.
x = number of wins per year
Is X practical?
No, because no professional team has ever lost every home game.
Ex:
y = total # of hours on the internet per month
x = # of Facebook friends
Is X practical?
Yes, because one can be on the internet and not use Facebook.
How do you find b1? Will slope direction/sign match correlation coefficient sign?
Correlation times standard deviation of (y var/x var).
b1 = r(Sy/Sx)
Yes, the signs will match. A negative r makes for a negative slope and vice versa.
How do you find b0?
b0 = y bar (avg. of y) minus b1 (slope) times x bar (avg. of x)
b0 = y bar - (b1 times x bar)
What are the four conditions for regression?
Quantitative Variables (2 quants)
Straight Enough
No Outliers
Does the Plot Thicken?
The value of r is/is not affected by variable placements?
It is! The Explanatory/predictor variable = x
Response variable = y
Ex: Since 1980, yearly average mortgage interest rates have fluctuated from a low of under 6% to a high of over 14%.
r = -0.8400 Sig. of prob = 0.0001
Mortgages = 220.893 - 7.775(interest)
Is there a relationship between the amount of money people borrow and the interest rate that is offered? What would you expect the relationship to look like?
(assume they pass the straight enough and no outliers conditions)
These variables pass the quantitative condition. X = interest Y = mortgage
The correlation shows that this module is negative, strong, and linear. The sig. prob shows that this data is statistically significant as it is less than 0.05.
Ex Continued: Since 1980, yearly average mortgage interest rates have fluctuated from a low of under 6% to a high of over 14%.
r = -0.8400 Sig. of prob = 0.0001
Mortgages = 220.893 - 7.775(interest)
Interpret the data.
b1 = -7.775
On avg., for every additional increase in the interest rate, expect to see the mortgage decrease by 7.775 billion.
b0 = 220.893 billion.
When the i-rate is 0, expect to have a mortgage of 220.893 billion. There is no practical interpretation of x bc the I-rate has never hit 0.
Ex: y hat = 220.893 - 7.775x
Observation #21 is y = 168.2 ($billions) and x = 7.9 (%)
Calculate the predicted value associated with this observation and interpret. Calculate the residual for this observation and interpret.
y hat = 220.893 - 7.775(7.9) = 159.47
When the I-rate is 7.9%, one can expect the avg. mortgage to be 159.47.
e = 168.2 - 159.47 = 8.73
The model underpredicted. The actual mortgage was $8.73 billion more on average than expected.