5 - Correlation & Regression Flashcards
Are correlation and causation the same thing?
No, just because 2 variables appear correlated doesn’t mean one causes the other
How can you tell whether there is positive or negative correlation based on a graph?
- Positive = line of best fit sloping upwards and r value is positive
- Negative = opposite
What are the units of correlation?
Unit free
What is r? What does it measure?
- Sample correlation coefficient
- Measures both the strength and direction of a linear relationship between 2 continuous variables
What is r^2?
- Coefficient of determination
- Whatever this value ends up being, we can say that the 2 variables share __% of their variance in common
When would you want to do a 2-tailed test instead of a 1-tailed test?
- 2-tailed test when not sure if it will be positive or negative correlation
- If you suspect either positive or negative then do 1-tailed
- *Be careful though because when doing 2-tailed, the region on each side is alpha/2, so will be a smaller region than 1-tailed which is just alpha (can make you accept the H0 based on 2-tailed when you should deny it with 1-tailed)
What is the difference between simple and multiple regression?
- Simple = have 1 predictor looking at 1 outcome
- Multiple = have multiple predictors (more than 1 independent variable) and have multiple ways to see how they collectively predict the dependent outcome measures
What is the purpose of regression?
- To see how well one variables predict each other
- If unsure of the prediction, do correlation
What do we need to know to describe the regression line?
- The slope (m) – has a clear practical interpretation
- The y-intercept (b) – may or may not have a practical interpretation
What is residual value?
- Difference between y observed minus y predicted (y = mx + b)
- *We want to minimize this gap
What is the principle of least squares?
Wanting to make the residual value as small as possible by choosing values for b & m that minimize the sum of the squared residual values (SSE)
What does it mean when slope is 0?
- No correlation between x and y
- Unlikely to happen even if there is no real relationship between the dependent and independent variables
If Ha is that beta doesn’t equal 0, is this 1 or 2 tailed? How do you know?
- When there is an equal sign, it is 2 tailed
- When there is > or < it is 1 tailed
What is SST?
- Sum of squares total
- Captures total variation in y
- SST = SSR + SSE
What is SSR?
- Sum of squares residuals
- Captures variation in y explained by regression