Week 9 - Regression Model Analysis Flashcards
What is ‘Residual Analysis’?
graphical evaluation of the residuals from regression to test for violations of the assumptions of regression.
Define the term ‘Residual’ in terms of business statistics?
It is the difference between the observed and the corresponding values that are predicted by the regression model.
What is the ‘Confidence interval estimate’?
a range of numbers constructed about the point estimate.
Define the term ‘Correlation coefficient’?
measure of the relative strength of the linear relationship between two variables.
What is the ‘Net regression coefficient’?
The population slope coefficient representing the change in the mean of Y per unit change in X, taking into account the effect of other independent X variables in a multiple regression.
What is the ‘Dummy variable’?
The variable that takes the values 0 or 1 to indicate the absence or presence of some categorical effect that may be expected to alter the result of the analysis.
Define the term ‘Interaction’ in terms of business statistics?
The impact of one independent variable depends on the value of another independent variable.
What is the ‘Interaction term’?
Refers to interaction within X independent variables, or more specifically, the effect one independent variable has upon another independent variable.
What is the ‘Cross-product term’?
It is the interaction term.
