Aspects of regression

Question 1

Checklist for OLS accuarcy estimates (3)

Answer 1

1. Significant number of data points/sample variables 2. Significant range/variability of x-variables 3. Significantly low error/scattered variables

Question 2

What does a 95% confidence indicator for ß prove?

Answer 2

That if you repeatadly use the CI formula, 95% of the intervals constructed will contain ß

Question 3

If ß=0 then X…

Answer 3

has no explanatory value

Question 4

2 ways to test if ß=0

Answer 4

1. The CI contains 0
2. t-statistic (ß estimate/standard error)

Question 5

If P value (t-test) greater than 0.05 show

Answer 5

t is small therefore ß=0

Question 6

When are tests for R² and ß=0 the same?

Answer 6

In simple regression

Question 7

If P value (F-test) greater than 0.05 then…

Answer 7

R²=0